what's wrong with the declaration:

[Evgueni Rouban]

what's wrong with the following element
declaration: 

<xsd:element name="e" default="1"/>

note, that if the type is set to "xsd:string" it is ok.
<xsd:element name="e" type="xsd:string" default="1"/>

Thanks.
-Evgueni

P.S. try the following schema and document:
----------------------------------- valueConstraint.xsd
<xsd:schema
  xmlns="valueConstraint"
  xmlns:xsd="http://www.w3.org/2001/XMLSchema";
  targetNamespace="valueConstraint">

  <xsd:element name="root" type="xsd:string" default="0" />

</xsd:schema>

----------------------------------- valueConstraint.xml
<test:root
    xmlns:test="valueConstraint"
    xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance";
    xsi:schemaLocation="valueConstraint valueConstraint.xsd"/>

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