'one can talk about "the value of $VarName" instead of the value bound to the first (second, etc) occurrence of $VarName.' The words "the value bound to ... $VarName" should be in quotes, as "the value of $VarName" is.
The fix for this bug does not appear in the Recommendation of 23 January 2007. It will be considered for a future publication (either an Errata document or some possible future version of the specification).
This issue has been entered as FS erratum E037, and the proposed fix has been committed to the source files for the next edition of the FS document. Consequently, I'm marking this issue resolved-FIXED, and CLOSED.