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Bug #: 381127 (SQLBUDT)
When you load an XML file in Microsoft Visual Studio 2005, the XML editor converts all XML-Data Reduced (XDR) schemas to XML Schema Definition (XSD) schemas. Additionally, the XML editor validates the file by using the XSD namespace, not the XDR namespace.
This issue occurs because the XML editor uses the XSD namespace for validation purposes. This behavior is by design.
Microsoft has confirmed that this is a problem in the Microsoft products that are listed in the "Applies to" section.
For more information, click the following article number to view the article in the Microsoft Knowledge Base:
824684 Description of the standard terminology that is used to describe Microsoft software updates