I think this is cooked. MSV version 2009.1 has fixes for multiple interrelated schemas. I expect to push a release of that RSN.
The woodstox 4.1 branch has fixes for error reporting and is set up to use MSV 2009.1. I need to negotiate with Tatu about pushing a release of this, or pushing the error reporting fix back to 4.0.x. All the CXF code is working for read-side validation in my local GIT-mo. As soon as Dan makes the branch, I plan to push all this. The CXF trunk will then be using snapshots of woodstox and MSV until they release. I'll fill in the write side presently, it should be pretty simple from here.
