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1. Create newLoanApplication schema. 2. Create new XML document -> Next-> XML Schema-Constrained Document -> Next -> select newLoanApplication.xsd in By Namespace branch. Result: "Next" button remains disabled. Filling Namespace textfield and checking checkbox doesn't help. So, it's impossible to complete the wizard.
After sonali's explanation, closing this bug as invalid. 102377 and 102348 are filed instead.
Verified