Error creating records from XML Schemas

I am trying to create a record from a xml schema. The
schema I am using is well formed and valid. Once I pick the
xsd file from the drop down in the and click finish, I am
getting the following error:
Warning: 0

source: ----- Source -----

warningCode: XSDC-081
warningMessage: [B2BCORE.0082.9702] Duplicate definition
found in another schema with the same target namespace

I do not understand why the integration server can not
create this record and schema from the xml schema, has
anyone run into the this before?