If I have correctly understood it, this looks like a case where the
TEI DTD's inability to bob up and down has caught you out -- but in
fact it has exposed an interesting question about what "act" and
"scene" really mean..

Although you have "act"s divided into "scene"s, you also have
something intermediate between the two -- all the scenes at a given
location. A new scene starts when a new person appears. A new
something-else (I will call it a "subact") starts when the location
changes. And you have (apparently) several such changes within a
single act. As you have noticed, stage directions indicate where the
sub-acts begin as well as where the scenes and acts begin, but the
problem is not really to do with stage directions. You need to
introduce an additional level of <div> element to mark the subacts --
whereupon you will find that the following parses perfectly well.

On Wed, 12 Jul 2000, Manuel Sánchez wrote:

|While marking up a drama I had a problem. The play is divided into acts
|and each act into scenes.
|   So, there are three types of <stage>s: ones referring to the characters,
|others to the scenes and others to the acts.
|   This is quite clear, but the problem arises when I need to insert a
|<stage> between to scenes. I need to do so because this stage refers to the
|act no to the scene. For example:
|   <div type="act">
|   <head type="main">Act I</head>
    <div type="subact">   <!-- added by LB -->
|   <stage>In the street</stage>
|   <div type="scene">
|   <head type="main">Scene I</head>
|   <stage>PAUL and MARY</stage>
|   <!-- Text of the Scene -->
|   </div>
|   <div type="scene">
|   <head type="main">Scene II</head>
|   <stage>JOHN appears</stage>
|   <!-- Text of the Scene -->
|   </div>
    </div>                  <!-- this and the next line added by LB -->
    <div type="subact">
|   <stage>In a pub</stage>      [This stage refers to the act,
|                                 I mean to the rest of the scenes]
|   <div type="scene">
|   <head type="main">Scene III</head>
    </div> <!-- end of the scene -->
    </div> <!-- end of the subact -->
    </div> <!-- end of the act -->

 Lou Burnard