We need to first create a new solution in visual studio.net, follow the steps below

•  Open Visual Studio.Net and then select File > New > Project > Class Library from Visual C# Projects.
• Enter a New Name “ClassLibraryEmployeeTest”. 
•  Right Click on the Project File and select Add > Add New Item > Select Class from the templates and Enter a New Name “Employee”
• Double Click on EmployeeData and paste in the following Code

using System;

using System.Xml.Serialization;

namespace ClassLibraryEmployeeTest

{

   [Serializable()]

   [XmlRoot]

   public class Employee

   {

               [XmlElement("EmployeeID",typeof(int))]

               public int empID;

               [XmlElement("EmployeeName",typeof(string))]

               public string empName;

               [XmlElement("Address", typeof(Address))]

               public Address address;

               [System.Xml.Serialization.XmlIgnore]

               public int EMPID

               {

                           get

                           {

                                       return empID;

                           }

                           set

                           {

                                       empID=value;

                           }

               }

   [System.Xml.Serialization.XmlIgnore]

               public string EMPName

               {

                           get

                           {

                                       return empName;

                           }

                           set

                           {

                                       empName=value;

                           }

               }

               public Employee()

               {

               }

   }

}

·        If you look at the code carefully you will notice that we have three fields, empID, empName and Address. Now we need to add Address so again

·        Right click on the Project File and select Add > Add New Item > select Class from the templates and enter the name “Address”.

·        Open Address and add the following code 

using System;

using System.Xml.Serialization;

namespace ClassLibraryEmployeeTest

{

   public class Address

   {

               [System.Xml.Serialization.XmlIgnore]

               public string address1;

               public string phoneNo;

               [System.Xml.Serialization.XmlIgnore]

               public string Address1

               {

                           get

                           {

                                       return address1;

                           }

                           set

                           {

                                       address1=value;

                           }

               }

               [System.Xml.Serialization.XmlIgnore]

               public string PhoneNo

               {

                           get

                           {

                                       return phoneNo;

                           }

                           set

                           {

                                       phoneNo=value;

                           }

               }

               public Address()

               {

               }

   }

}

•  So now build your solution file.
• Open the Visual Studio command prompt. Click on Start > All Programs > Microsoft Visual Studio.Net 2003 > Visual Studio .Net Tools > Visual Studio.Net 2003 command prompt
•  At the command prompt type in the following xsd <path to your solution file\bin\debug\ClassLibraryEmployeeTest.dll> /type:Employee  /o:<path to where you want to put the new schema file for instance c:\EmployeeTest\>
•  If you have trouble getting your solution path click on the Solution file in the Solution explorer and in the properties window you will find the Path.
•  At the command prompt you will notice “Writing file c:\employeetest\schema0.xsd. By default the schema is named schema0.xsd.
• Now open a new BizTalk Solution. Select File > New BizTalk Projects > Empty BizTalk Server Project. Type in a new Name like BizTalkSchemaTest
•  Once opened Right click on your Project File and select Add > Add Existing Item > <navigate to the directory where you have schema0.xsd for example c:\employeetest\>Select Schema0.xsd and click on Open.

You have now added the new schema to BizTalk.