In Visual Studio 2005 the XSD compiler was in the SDK/v2.0 directory. In Visual Studio there is only a SDK/v3.5 directory has gone and so too has the xsd.exe compiler. Where
I have xsd.exe here: C:\Program Files\Microsoft SDKs\Windows\v6.0A\bin\xsd.exe So I think you have yours at the Windows Platform SDK corresponding path on your machine. Make sure you have installed PlatformSDK sometimes it can be in VisualStudio directory