Indentation problems in SGML mode

[Jeffery B. Rancier]

I'm seeing peculiar indentation in some of my XML files.  For example,
if I start with the following:

<?xml version="1.0"?>
<project name="ScreenDesigner" default="help" basedir=".">
    <!-- Project directories -->
    <property name="src.dir"              value="src"/>
    <property name="doc.dir"              value="doc"/>
    <property name="dist.dir"             value="dist"/>
    <property name="lib.dir"              value="lib"/>
    <property name="bin.dir"              value="bin"/>

    <!-- Temporary build directories -->
    <property name="build.dir"            value="build"/>
    <property name="build.classes"        value="${build.dir}/classes"/>
    <property name="build.doc"            value="${build.dir}/doc"/>
    <property name="build.lib"            value="${build.dir}/lib"/>

and run mark-whole-buffer, and run indent-region, I get the
following.  Is a bug in SGML mode?

<?xml version="1.0"?>
<project name="ScreenDesigner" default="help" basedir=".">
  <!-- Project directories -->
  <property name="src.dir"              value="src"/>
    <property name="doc.dir"              value="doc"/>
      <property name="dist.dir"             value="dist"/>
        <property name="lib.dir"              value="lib"/>
          <property name="bin.dir"              value="bin"/>

            <!-- Temporary build directories -->
            <property name="build.dir"            value="build"/>
              <property name="build.classes"        
value="${build.dir}/classes"/>
                <property name="build.doc"            value="${build.dir}/doc"/>
                  <property name="build.lib"            
value="${build.dir}/lib"/>

-- 
Thanks,
Jeff
,----
| Jeffery B. Rancier
| 
| Softechnics
| a METTLER TOLEDO company
`----