I have this xml-Schema:
The real reason you're getting this error,
S4s-elt-character: Non-whitespace Characters Are Not Allowed In Schema Elements Other Than 'xs:appinfo' And 'xs:documentation
is that you're attempting to validate your XML file as an XSD file.
So, fix the way you're invoking your validating parser so that you're validating your XML file against your XSD. See How to link XML to XSD using schemaLocation or noNamespaceSchemaLocation?
Additionally, there are a slew of other problems with your XSD itself. See collapsar's answer for help there.