Part 2 response to http://stackoverflow.com/questions/18562720/validating-a-nested-xml-element-with-an-empty-namespace-using-xsd

GroupProjInc.xsd

<?xml version="1.0" encoding="utf-16"?>
<xs:schema xmlns:b="http://schemas.microsoft.com/BizTalk/2003" attributeFormDefault="unqualified" elementFormDefault="qualified" xmlns:xs="http://www.w3.org/2001/XMLSchema">
  <xs:element name="BorlandProject" type="BorlandProjectType2" />
  <xs:complexType name="BorlandProjectType2">
    <xs:choice>
      <xs:sequence>
        <xs:element name="Default.Personality" type="xs:string" />
      </xs:sequence>
      <xs:element name="BorlandProject" type="BorlandProjectType2" />
    </xs:choice>
  </xs:complexType>
</xs:schema>