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Hi tvsnow,
In the XML community, this theory has been recently recognized as a simple but powerful model for XML schemata. In particular, the design of RELAX (REgular LAnguage for XML) is directly based on this theory.
It's a lot of complicated math and stuff that makes my mind hurt. Here's a link for more info 
Answer this Question: "What is hedge automata theory?"
What is hedge automata theory?
What is hedge automata theory?