The following "paradox" arose as i was studying the proof of Theorem 2.3.3 in Bruns and Herzog, CMR. My question is self-contained but i could expand on details upon request.
Let $(S,\mathfrak{n})$ be a regular local ring and let $I$ be an ideal of $S$ such that $I \subset \mathfrak{n}^2$. Now suppose that $R=S/I$ is a complete intersection ring. Then $\mu(I) = \operatorname{emb.dim} R - \dim R$, where $\mu(I)$ is the minimal number of generators of $I$ (e.g. Matsumura, CRT, p. 170-171 or Bruns and Herzog Theorems 2.3.2(b) and 2.3.3(b)). Because $I \subset n^2$, we have that $\operatorname{emb.dim} R = \dim S$. Hence $\mu(I) = \dim S - \dim S/I$. But $S$ is local regular and hence Cohen-Macaulay, and so $\operatorname{height} I + \dim S/ I = \dim S$, thus $\mu(I) = \operatorname{height}(I) =: \nu$. So there exist elements $x_1, \cdots, x_{\nu}$ inside $I$ such that $I = (x_1,\dots,x_{\nu})$. It follows that $\dim S/(x_1,\dots,x_{\nu}) = \dim S - \nu$ and since $S$ is regular, we conclude that $(x_1,\dots,x_{\nu})$ is a part of a system of parameters or equivalently that the images of $x_1,\dots,x_{\nu}$ mod $\mathfrak{n}^2$ are linearly independent. But by hypothesis $I \subset \mathfrak{n}^2$ and so every $x_i$ maps to zero in $\mathfrak{n}/ \mathfrak{n}^2$, CONTRADICTION.
Question: Where is the mistake in the above argument
********* EDIT ******************
After Daniele's comment, let me present essentially the above argument more directly:
Let $R$ be a complete intersection ring. Hence there exists a regular local ring $(S,n)$ and an $S$-sequence $x :=x_1,\dots,x_{\nu}$ such that $R=S/(x)$. Since $S$ is regular, then it is Cohen-Macaulay and so by Theorem 2.1.2 in Bruns and Herzog, CMR, $x$ is part of a system of parameters of $S$. Then by Theorem 14.2 in Matsumura, CRT, $S/(x)=R$ will be regular.
Now, the only thing that i assumed above is that for a regular local ring $S$ "a system of parameters" is the same thing as "a regular system of parameters" and i now see that this may not be the case. Is that it?