The problem is lack of support for qualification of attributes and local elements, as defined in section 3.1 of (http://www.w3.org/TR/xmlschema-0/:
Qualification of local elements and attributes can be globally specified by a pair of attributes, elementFormDefault and attributeFormDefault, on the schema element, or can be specified separately for each local declaration using the form attribute. All such attributes' values may each be set to unqualified or qualified, to indicate whether or not locally declared elements and attributes must be unqualified.
We'll need to enhance our XML serialization in order to support this.
Will let you know by Sunday when this is expected.
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