Pattern matching (XSV vs. Xerces)

Given the following element definition

         <element name ="Path2" minOccurs="0" maxOccurs="unbounded">

           <simpleType>

             <restriction base ="string">

               <pattern value="(\.//)?((child::)?((\i\c*:)?(\i\c*|\*)))|\."/>

              </restriction>

           </simpleType>

         </element>
and an element in an instance document
         <Path2>.//.</Path2>


XSV thinks this is valid.  But, Xerces thinks this is invalid.  In my opinion,
Xerces is right because '|' has the lowest precedence.  Am I right?

Thx,

-Stanley