When I tried to compile the attached schema with XJC I got this error. Interestingly, when I tried with Mustang XJC, it compiled fine.

 java -classpath ~/jax-ws-sources/jaxws-ri/build/lib/jaxb-xjc.jar com.sun.tools.xjc.Driver JVTTroubleTicketServantService_schema1.xsd
parsing a schema...
[ERROR] s4s- customer -invalid-value: Invalid attribute value for 'type' in element 'element'. Recorded reason: UndeclaredPrefix: Cannot resolve 'ns3:personReachImpl' as a QName: the prefix 'ns3' is not declared.
  line 8 of file:/tmp/JVTTroubleTicketServantService_schema1.xsd
Posted Date : 2006-07-18 03:26:43.0

We got similar schema from Microsoft failing at the same error - not being able to lookup namespace prefix declaration for inline elements. Reassigning to (hopefully) right manager.
Posted Date : 2008-08-07 16:01:21.0

N/A

This looks like a problem in the JAXP RI. I created a test case to reproduce this problem, and so I'm assigning this bug to the JAXP team.

See the test case I added to jaxp-sources/jaxp-ri/src/unit-test/
Posted Date : 2006-07-21 20:06:10.0

It may be confusing but the jaxp team uses 1.5 to indicate jaxp.next. This request was therefore out of the current bug screen. Note that it's jaxp 1.3 in jdk5 and 1.4 in jdk6/7. This issue appears in jaxp 1.3/jdk5.
Posted Date : 2009-06-17 00:43:50.0

Fixed in jaxp 1.3. Will follow up with a jdk5 integration.
Posted Date : 2009-06-18 17:54:25.0