xsd Schema compile issue - out of memory

[Ramamoorthi@discussions.microsoft.com Sanjay Ramamoorthi]

We received an xsd schema from our partner that looks valid and correct. It
has about 900 global elements. The schema didn't have any default or target
namespaces(though adding one didn't change the behavior below).

We imported this schema within Visual Studio 2008 in a Biztalk 2009 project
and created a simple map using this schema. When we compile this project with
just this map step, it eventually stops with an 'out of memory' error. The
xsd.cs file created for this file is 4 times(1.6MB) the size of the xsd
file(400K).

Is there a way to find out if Biztalk doesn't like something in the schema
or are there any known limitations using a W3C schema?

Any help would be appreciated.

Thanks
Sanjay