[Tools] XSD Inference Utility
Consider your results from using the XSD Infererence 1.0 utility as a starting point rather than an end product. You should carefully review the inferred schema and intelligently edit it into something real. What you get from XSD inference probably will not give you a really good schema. That still takes some thought, however, and the tool certainly can save you some time. It certainly is cheaper than buying an expensive commercial XML IDE just to autogenerate some XML Schemas! If you ever worked for a company that bought XMLSpy just for this purpose, you know what I mean. Be sure to read about the tool's caveats and limitations - particularly, don't miss the 1 MB size limitation part. The download contains an excellent help file.
I have found this tool useful and certainly recommend adding it to your .NET tool belt.
Also, if you have used the Xsd.exe tool, you may also want to have a look at the XSD Object Code Generator tool on the XML Tools page. While similar to Xsd.exe, the XSD Object Code Generator tool claims to create an "enhanced class structure" and to handle "many more common schema types."