As I work through the Dalvi text, I'm implementing what was described in the previous post, and I thought I'd post a couple of examples of markup for later reference, subject to modification as the wrinkles are ironed out. Here's a blockquote:

<cit rend="block">
          <quote>Why have I left that undeclared?  Because it is unbeneficial, it does not belong to the fundamentals of spiritual life, it does not lead to disenchantment, to dispassion, to cessation, to peace, to direct knowledge, to Enlightenment, to <foreign>Nibbāna</foreign>.  That is why I have left it undeclared.<note corresp="#bodhi_2005"><title level="m">In the Buddha’s Words</title>, 230-33.</note></quote>
</cit>

The <note> element here occurs within the <quote> element; I'm not sure if that's the right place for it, but it's probably simplest because it ensures that the note number occurs attached to the quote, as opposed to wrapped to the block below. In contrast, with inline quotes, we have a different setup:

<cit><quote>It is by understanding the nature of reasoned inquiry, epistemology and debating theory that one attains the highest goal (nihṣreyasa).</quote><note corresp="#vidyabhusana_1990"><title level="m">Nyāya Sutra</title> 1.1.1.</note></cit>

Here we don't want the <note> inside the <quote> element, because that would place it inside the quotation marks if these are being supplied by the rendering code; however, it remains inside the <cit> tag, ensuring that the reference is associated closely with the quotation.

So far so good...