Q:

SQL Server XML Data Type and QUOTED_IDENTIFIER

Can anyone provide insight into this?
I've developed an import process using an XML data type. After the data is inserted in to a table by the import sProc I run another procedures to update another table with the imported table.
The update procedure throws an exception if it is created with SET QUOTED_IDENTIFIER OFF. I'd like to understand why that is happening.
Here's the code:
DECLARE @xmlRecords XML
SET     @xmlRecords = (SELECT importedXML FROM importTable WHERE importId = @lastImportId)

UPDATE  o
SET     o.ReferralCode = import.refCode
FROM    (
            SELECT  records.record.value('(@orderId)[1]', 'INT') AS orderId, 
                    records.record.value('(@refCode)[1]', 'VARCHAR(15)') AS refCode
            FROM    @xmlRecords.nodes('/records/record') records(record)
            ) import 
            INNER JOIN tblOrder o ON import.OrderId = o.orderId

I'm assuming it has to do with the quoted datatypes ('VARCHAR(15)') or the xml query path elements ('/records/record').
Thanks for any insight you can provide.

A:

A very simple test case 
set quoted_identifier off

DECLARE @xmlRecords XML
SET     @xmlRecords = '<records><record orderId="1" refCode="1234"></record></records>'

SELECT  records.record.value('(@orderId)[1]', 'INT') AS orderId
FROM    @xmlRecords.nodes('/records/record') records(record)

Gives

Msg 1934, Level 16, State 1, Line 8
  SELECT failed because the following
  SET options have incorrect settings:
  'QUOTED_IDENTIFIER'. Verify that SET
  options are correct for use with
  indexed views and/or indexes on
  computed columns and/or query
  notifications and/or xml data type
  methods.

This is documented in passing here

Executing XQuery and XML data
  modification statements requires that
  the connection option
  QUOTED_IDENTIFIER be ON.

I haven't seen a reason why this is a requirement for xQuery though.

