Well i needed to know how to generate a schema from XSLT which means you need to output the first line of the schema definition which wasnt too intuitive so here is the result:
hmmm – cant paste it in here – see attatched file!!
XSLT Transformation to Generate an XSD schema
Ok it was MUCH simpler than i thought of course! you simply type in the whole thing into the xslt and it just prints it out! so you dont need to use xs element at all doh!