As a developer with a good deal of XML consuming and producing experience, I\'ve never really interacted with schemas before. For the first time this is actually occurring
There is no nodes in your XML that can be validated by the schema (namespaces are different). As result it does not report any errors. As far as I know behavior for nodes that are not matched to any schema is allow anything.
You also could set validation options in XmlReaderSettings to allow warnings:
ReportValidationWarnings - Indicates that events should be reported if a validation warning occurs. A warning is typically issued when there is no DTD or XML Schema to validate a particular element or attribute against. The ValidationEventHandler is used for notification.
Check out XmlSchemaSet.Add and HOW TO: Validate an XML Document by Using Multiple Schemas if you expect nodes from multiple namespaces to be present in the XML.