distinct-values( ) appears to return empty for any sequence of nodes.

I have a problem with distinct-values using Saxon 8.4

If I run the following XQuery:
----------------begin XQuery ----------------
let $x:=(<one/>,<one/>,<two/>)
let $y:=(1,1,2)
return
<answers>
<nodeDistinct>{distinct-values($x)}</nodeDistinct>   
<valueDistinct>{distinct-values($y)}</valueDistinct>
</answers>
-------------- end XQuery ----------------

I get the result
--------------begin Result  ------------------------
<?xml version="1.0" encoding="UTF-8"?>
<answers>
     <nodeDistinct/>
     <valueDistinct>1 2</valueDistinct>
</answers>
--------------end Result --------------------------

It seems that distinct-values fails silently on any sequence of nodes.  
Am I missing something
in the spec for XQuery 1.0 that forbids using a sequence containing 
nodes of type element or document?

Thanks,

Ben



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