OC4J Problem: global-web-application.xml Works, orion-web.xml Doesn't

Question

I recently "solved" a somewhat common problem in OC4J regarding the use of Xerces rather than OC4J's built-in parser. The problem was solved by adding this line to global-web-application.xml:

<web-app-class-loader search-local-classes-first="true"/>

Unfortunately, this was too much of a big-hammer approach that could cause problems on the app server, so I tried to resolve it via creating the following orion-web.xml file in the WEB-INF directory of the app:

<?xml version="1.0"?>
<orion-web-app xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xsi:noNamespaceSchemaLocation="http://xmlns.oracle.com/oracleas/schema/orion-web-10_0.xsd"&gt;
<web-app-class-loader search-local-classes-first="true" include-war-manifest-class-path="true"/>
<web-app/>
</orion-web-app>

Unfortunately, it turns out that using global-web-application.xml worked, using orion-web.xml didn't

OC4J version is 10.1.3.5.

Can anyone advise?