Godmar,
Has there been any progress on this issue?
It has been put on our todo list.
Independent of whether we are using the XQJ binding to access BaseX, it is nearly useless to us if it can't handle XML namespaces on operations as simple as replacing a node.
Note that XQuery Update is still a new standard, and a comparison of the regular, and the Update XQuery test results will show you that there are hardly any implementations available out there that both offer XQUTS and reach 100% Update conformance:
http://dev.w3.org/2007/xquery-update-10-test-suite/results/XQUTSReportSimple... http://dev.w3.org/2006/xquery-test-suite/PublicPagesStagingArea/XQTSReportSi...
"100% conformance" means that the test suite has been correctly answered; it doesn't mean of course that an XQuery Update implementation is bug free. – This doesn't mean that your bug report is irrelevant; it just means it has to wait until other, more important todos have been resolved.
Christian