schema validation problem

Hi all,
I'm fairly new to xml and schemas and I've run across a problem with a 
third party schema that I'm using. I've attached it as a reference as it's 
fairly long. The problem is that I'm using XMLBEANS from BEA to create Java 
classes for the schema. It says the schema isn't valid.
Netbeans Java IDE which parses with Xerces I believe, also claims it is not 
valid, as does xsdvalid from XMLmind. They all report a 
"derivation-ok-restriction.2.1.2". I'm not sure what that is. The schema 
was created with xmlspy which says the schema is ok.
I need to know who is right so I contact the correct party.

Thanks in advance.

Carl B. Marcum
Sr. Gage Engineer
Precision Gage & Tool Co.
Ph. (937) 866-9666
Fax (937) 866-9661
e-mail carl-m@pgtgage.com