I just tried again, using the XSL and XML copy/pasted straight from your 
posting, and got the same result I got before (see below), where the 
"xmlns:sql="urn:schemas-microsoft-
com:mapping-schema"" is being added (which I don't want it to do).

<?xml version="1.0" encoding="IBM437"?>
<xsd:schema xmlns:xsd="http://www.w3.org/2001/XMLSchema">
  <xsd:include schemaLocation="BasicTypes.xsd" 
xmlns:sql="urn:schemas-microsoft-
com:mapping-schema">
  </xsd:include>
  <xsd:complexType name="Order_PerDiem_Type" 
xmlns:sql="urn:schemas-microsoft-co
m:mapping-schema">
    <xsd:sequence>
      <xsd:element name="Description" type="VARCHAR_500" nillable="true">
      </xsd:element>
      <xsd:element name="IsOnCall" type="BOOLEAN">
      </xsd:element>
    </xsd:sequence>
    <xsd:attribute name="Type" type="OrderType" fixed="1">
    </xsd:attribute>
  </xsd:complexType>
  <xsd:element name="Order" type="Order_PerDiem_Type" 
xmlns:sql="urn:schemas-mic
rosoft-com:mapping-schema">
  </xsd:element>
</xsd:schema>