Index: runtime/src/com/sun/xml/bind/api/impl/NameConverter.java
===================================================================
--- runtime/src/com/sun/xml/bind/api/impl/NameConverter.java	(revision 3866)
+++ runtime/src/com/sun/xml/bind/api/impl/NameConverter.java	(working copy)
@@ -147,9 +147,9 @@
             }
 
             // issue 709; s/(.*)#(.*)/\1/
-            idx = nsUri.indexOf("#");
-            if(idx >= 0)
-                nsUri = nsUri.substring(0, idx);
+//            idx = nsUri.indexOf("#");
+//            if(idx >= 0)
+//                nsUri = nsUri.substring(0, idx);
 
             // tokenize string
             ArrayList<String> tokens = tokenize( nsUri, "/: " );
@@ -208,10 +208,17 @@
             StringBuffer newToken = new StringBuffer();
             for( int i = 0; i < token.length(); i++ ) {
                 char c = token.charAt( i );
+//@  First character , if not a valid start as well as a valid Part...is not addressed as described in SPEC
 
                 if( i ==0 && !Character.isJavaIdentifierStart( c ) ) {
                     // prefix an '_' if the first char is illegal
+				if( !Character.isJavaIdentifierPart( c ) )
+				{//Not a valid part as well, so replace 'c' with a '_' (as per SPEC - also addresses 709)
+                    newToken.append('_');
+				}else
+				{
                     newToken.append('_').append(c);
+}
                 } else if( !Character.isJavaIdentifierPart( c ) ) {
                     // replace the char with an '_' if it is illegal
                     newToken.append( '_' );