What's going on here?

I think you forgot to RTFM all the way through. Please consult the SCHEMA SUPPORT section in particular. As you'll read, you're using a number of constructs that are not yet supported by XML::Validator::Schema, including refs and multiple root elements. I think it should be possible to express your schema in terms that XML::Validator::Schema can understand, but it will be very deep and rather hard to read.

I expect to eventually add support for all the constructs you're using. Of course, it will go much faster if I get some help. Patches welcome!

-sam