dfdl:separatorPolicy is defined in the DFDL Spec, dated January 31,2011, but is not defined in the DFDL Spec, dated August 14, 2012. Instead, dfdl:separatorSuppressionPolicy is defined in the DFDL Spec, dated August 14, 2012.
The error message when test, lengthKindDelimited_04, in daffodil-test\src\test\scala-debug\daffodil\section12\lengthKind\TestLengthKindDelimitedDebug.scala is run:
2012-09-22 16:15:04 daffodil.compiler.Compiler Error [Schema Definition Error: Property separatorPolicy is not defined. Context was: Sequence.]

The error message when test, lengthKindDelimited_03, in daffodil-test\src\test\scala-debug\daffodil\section12\lengthKind\TestLengthKindDelimitedDebug.scala is run:
2012-09-22 16:26:56 daffodil.compiler.Compiler Error [Schema Definition Error: separatorSuppressionPolicy='Always' not allowed with occursCountKind='Implicit'.() Context was: LocalElementDecl.s]

Please see commit 33196ed in master.