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A quick reply: When I see your XML schema with the import of the MS.xsd schema file, I get the feeling that the MS.xsd file should be located in the same directory as the other XML schema.
An alternative may be to change the schema location in the import statement so that the MS.xsd schema is found.
Joined: Jan 06, 2009
Thanks Ivan. You are correct. If I move the MS.xsd to current directory or give a relative path in the schemaLocation it works correctly.