FULL PRODUCT VERSION :
java version "1.6.0_01"
Java(TM) SE Runtime Environment (build 1.6.0_01-b06)
Java HotSpot(TM) Client VM (build 1.6.0_01-b06, mixed mode, sharing)

ADDITIONAL OS VERSION INFORMATION :
MS Windows / XP

A DESCRIPTION OF THE PROBLEM :
The given program fails on the following statement in the stylesheet.

    not(preceding-sibling::* or following-sibling::*)

It runs fine on the following parenthesized variant.

    not((preceding-sibling::*) or following-sibling::*)



-----------------Test.java------------------
import java.io.*;
import javax.xml.transform.*;
import javax.xml.transform.stream.*;

public class Test {
   public static void main(String[] args)
        throws TransformerConfigurationException,
              TransformerException {
    try{
       StreamSource xslt = new StreamSource(new File("test.xslt"));
       TransformerFactory fc = TransformerFactory.newInstance();
       Transformer transformer = fc.newTransformer( xslt );
    } catch (Exception e){
       System.err.println(e);
} } }

--------------------test.xslt--------------------

<?xml version="1.0" encoding="UTF-8"?>
<xsl:stylesheet version="1.0"
      xmlns:xsl="http://www.w3.org/1999/XSL/Transform"
      xmlns:xlink="http://www.w3.org/1999/xlink"
   >
      <xsl:output omit-xml-declaration = "yes" />
<xsl:template match="mo" >
   <xsl:choose>
      <xsl:when test="not(preceding-sibling::* or following-sibling::*)" >
      </xsl:when>
    </xsl:choose>
</xsl:template>
</xsl:stylesheet>



STEPS TO FOLLOW TO REPRODUCE THE PROBLEM :
javac Test.java
java Test


ERROR MESSAGES/STACK TRACES THAT OCCUR :
java Test
ERROR: 'Syntax error in 'not(preceding-sibling::* or following-sibling::*)'.'
FATAL ERROR: 'Could not compile stylesheet'
javax.xml.transform.TransformerConfigurationException: Could not compile stylesheet

REPRODUCIBILITY :
This bug can be reproduced always.

---------- BEGIN SOURCE ----------
-----------------Test.java------------------
import java.io.*;
import javax.xml.transform.*;
import javax.xml.transform.stream.*;

public class Test {
   public static void main(String[] args)
        throws TransformerConfigurationException,
              TransformerException {
    try{
       StreamSource xslt = new StreamSource(new File("test.xslt"));
       TransformerFactory fc = TransformerFactory.newInstance();
       Transformer transformer = fc.newTransformer( xslt );
    } catch (Exception e){
       System.err.println(e);
} } }

--------------------test.xslt--------------------

<?xml version="1.0" encoding="UTF-8"?>
<xsl:stylesheet version="1.0"
      xmlns:xsl="http://www.w3.org/1999/XSL/Transform"
      xmlns:xlink="http://www.w3.org/1999/xlink"
   >
      <xsl:output omit-xml-declaration = "yes" />
<xsl:template match="mo" >
   <xsl:choose>
      <xsl:when test="not(preceding-sibling::* or following-sibling::*)" >
      </xsl:when>
    </xsl:choose>
</xsl:template>
</xsl:stylesheet>


---------- END SOURCE ----------