compilation error with direct-initialization

Consider the following program x.cpp:

#include <cstdlib>
#include <iostream>
#include <vector>
#include <deque>
#include <string>

using namespace std;

template <typename Container>
typename Container::value_type add(const Container& c)
{
        typename Container::value_type val = typename
Container::value_type();
        // typename Container::value_type val(typename
Container::value_type());

        for (typename Container::const_iterator ci = c.begin();
             ci != c.end();
             ++ci)
                val = val + *ci;

        return val;
}

int main()
{
        vector<int> c;
        int i;

        while (cin >> i)
               c.push_back(i);

        cout << "sum = " << add(c) << endl;

        deque<string> d;
        string str;

        cin.clear();

        while (cin >> str)
               d.push_back(str + " ");

        cout << "sum = " << add(d) << endl;

        return EXIT_SUCCESS;
}

I compiled this program with g++3.4.3 as
g++ -std=c++98 -pedantic -Wall -Wextra x.cpp

There is no compilation error.

The line
typename Container::value_type val = typename Container::value_type();
is copy-initialization. Am I correct ?

Instead of the above line, if I have the following line
typename Container::value_type val(typename Container::value_type());

I get compilation error. I tried this form to behave as direct-
initialization. Isn't this direct-initialization ?

Kindly explain what is wrong with direct-initialization syntax?

Alternatively I could have used the prototype,
template <typename Container>
typename Container::value_type add(const Container& c,
                                                       typename
Container::value_type val)
to avoid declaring 'val' inside the function. But I didn't do it for
learning purpose only.

Thanks
V.Subramanian