On IRC, Hixie wanted me to remind him about:

   http://lists.whatwg.org/pipermail/whatwg-whatwg.org/2006-July/006943.html

("What's also interesting is that Firefox and IE don't replace entities ...")


I think it would be as simple as changing:

   U+0026 AMPERSAND (&)
      When the content model flag is set to one of the PCDATA or RCDATA
      states: switch to the entity data state.

      Otherwise: treat it as per the "anything else" entry below.

...to:

   U+0026 AMPERSAND (&)
      When the content model flag is set to one of the PCDATA or RCDATA
      states and the escape flag is set to false: switch to the entity data
      state.

      Otherwise: treat it as per the "anything else" entry below.

...in the data state.

--
Simon Pieters

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