using XSD/Schema in VS2005/Word project - XML SOAP

Hello,
i have a schema which also imports the XHTML schema:

<xsd:import
namespace="http://www.w3.org/1999/xhtml"schemaLocation="http://www.w3.org/2002/08/xhtm­l/xhtml1-strict.xsd"/>


This schema validates fine in XMLSpy and in VS2005.

However, in Visual Studio 2005 beta2, when i attempt to reference this
schema from "Templates and Add-ins" it complains that "One or more of
the selected schemas requires additional schemas. these schemas will
automatically be attached to your document".
The problem is, when it attempts to do this an error is occurs: "one or
more schemas you have selected cannot be used in this document. A
schema may not be available, may not be valid, or may require
additional schemas in order to function correctly".

NOW, when i go to Schema Library from "Templates and Addins", clear
everything out, then add my schema here, it correctly finds the XHMTL
namespace and adds it to the list of schemas. however, when time comes
to include those references, the error is "The namespace prefix is not
allowed to start with the reserved string 'xml'."

I am almost certain this is referring to the XHTML schema. but i am
not sure why Word is complaining about this? that schema is valid, as
it is THE xhtml schema defined by the WC3 organization.

any ideas?