Rakka,
"xsd designed dataset" means???
Do you mean that you wand to use an XSD to build tables in yoru backend?
Yes, you can do it, but you'll have to read the XSD and build the SQL
statements that make the table, and have database rights to accomplish this.
For the last reason, you might consider a stored proc, although parsing an
XSD in SQLServer sounds like a true nightmare. In theory you could call a
SQL stored proc passing the XSD as a string, call a C++ based object from
your stored proc, have that wrapper call a .NET DLL via COM interop that was
located on your SQL Server and had proper rights, and have it read the
schema.