diff -r 115609d6fff5 schema2beans/src/org/netbeans/modules/schema2beans/DOMBinding.java
--- a/schema2beans/src/org/netbeans/modules/schema2beans/DOMBinding.java	Fri Feb 04 10:50:47 2011 -0800
+++ b/schema2beans/src/org/netbeans/modules/schema2beans/DOMBinding.java	Mon Feb 07 13:41:10 2011 +0100
@@ -861,6 +861,7 @@
 
                     Node parent = prop.getParentNode();
                     this.node = f.createElement(prop);
+                    configureNS(node, parent);
 
                     if (DDLogFlags.debug) {
                         TraceLogger.put(TraceLogger.DEBUG, TraceLogger.SVC_DD,
@@ -902,6 +903,7 @@
                             NodeFactory f = prop.getNodeFactory();
                             if (node == null) {
                                 node = f.createElement(prop);
+                                configureNS(node, parent);                              
                                 Node sibling = prop.getFollowingSibling(this);
                                 parent.insertBefore(this.node, sibling);
                             }
@@ -943,7 +945,8 @@
                     if (this.node == null) {
                         Node parent = prop.getParentNode();
                         this.node = f.createElement(prop);
-
+                        configureNS(node, parent);
+                    
                         if (DDLogFlags.debug) {
                             TraceLogger.put(TraceLogger.DEBUG,
                                             TraceLogger.SVC_DD,
@@ -1002,6 +1005,17 @@
     boolean hasDomNode() {
 	return (this.node != null);
     }
+    
+    private static void configureNS(Node node, Node parent) {
+        Document doc = parent.getOwnerDocument();
+        if (parent.getNamespaceURI() != null && parent.getNamespaceURI().equals(node.getNamespaceURI())) {
+            node.setPrefix(parent.getPrefix());
+        } else if (parent.getNamespaceURI() != null
+                && node instanceof Element
+                && doc.getDocumentElement().getNamespaceURI() != null) {
+            ((Element) node).setAttribute("xmlns", doc.getDocumentElement().getNamespaceURI()); // NOI18N
+        }        
+    }
 }
 
 
diff -r 115609d6fff5 schema2beans/src/org/netbeans/modules/schema2beans/GraphManager.java
--- a/schema2beans/src/org/netbeans/modules/schema2beans/GraphManager.java	Fri Feb 04 10:50:47 2011 -0800
+++ b/schema2beans/src/org/netbeans/modules/schema2beans/GraphManager.java	Mon Feb 07 13:41:10 2011 +0100
@@ -210,7 +210,7 @@
 	Node n;
 	for (n = doc.getFirstChild(); n != null; n = n.getNextSibling()) {
 	    if (n.getNodeType() == Node.ELEMENT_NODE
-	    && n.getNodeName().equals(name)) {
+	    && (name.equals(n.getNodeName()) || name.equals(n.getLocalName()))) {
 		break;
 	    }
 	}
@@ -506,7 +506,10 @@
         Map dupDtdNameIterators = new HashMap();	// Map<String, Iterator<BeanProp>>
         for (Node n = node.getFirstChild(); n != null; n = n.getNextSibling()) {
             if (n.getNodeType() == Node.ELEMENT_NODE) {
-                String eltName = n.getNodeName();
+                String eltName = n.getLocalName();
+                if (eltName == null) {
+                    eltName = n.getNodeName();
+                }
 
                 //System.out.println("eltName="+eltName);
                 BeanProp matchingProp = (BeanProp) dtdName2Prop.get(eltName);
diff -r 115609d6fff5 schema2beans/src/org/netbeans/modules/schema2beans/NodeFactory.java
--- a/schema2beans/src/org/netbeans/modules/schema2beans/NodeFactory.java	Fri Feb 04 10:50:47 2011 -0800
+++ b/schema2beans/src/org/netbeans/modules/schema2beans/NodeFactory.java	Mon Feb 07 13:41:10 2011 +0100
@@ -61,7 +61,11 @@
     }
 
     Node createElement(BeanProp prop) {
-	return this.factory.createElement(prop.getDtdName());
+        String ns = factory.getDocumentElement().getNamespaceURI();
+        if (ns != null) {
+            return this.factory.createElementNS(ns, prop.getDtdName());
+        }
+        return this.factory.createElement(prop.getDtdName());
     }
 
     Node createText() {