Himal,
An Element can contain other elements or text.
#PCDATA stands for Parsed Character Data and an Elements data (Elements and Text) must be parsed so therefore it must be #PCDATA if the elements contents is text:
<!ELEMENT name (#PCDATA)>
#CDATA stands for Character Data and is NOT parsed. Attributes are not parsed by the parser so they must be referred to as Character Data.
<!ATTLIST name first CDATA >
I hope this helps and maybe someone can add to this!
[ September 20, 2002: Message edited by: Aaron O'Brien ]