SajK,
There are no native functions in TestStand that will read XSD or XML file formats. The property loader tool (Tools -> Import/Export Properties) and the property loader step type can be used to load data such as step limits and variables. The property loader is able to read tab delimited text, comma delimited text, and Excel spreadsheets files (xls). For more information on the property loader check Appendix D of the TestStand Reference Manual (starts on page D-5). If you are able to convert XSD to the property loader format then you can use the property loader step type to load in the data.
Otherwise, you would have to implement your own XSD reader in a code module of your choice (LabVIEW, CVI, C, .NET, etc). Then you would have to manually apply the data that you read to the proper locations in TestStand. For instance, reading the limits for a step then setting the Step.Limits container to the appropriate data.
Either way, you will have to implement your own code in order to get the information into TestStand. The advantage of the property loader is not having to write code to apply the limits and other data to the proper locations within TestStand. The property loader is also capable of reading and applying multiple step properties from one execution step.
Let me know if you have any questions.
Thanks,
Tyler Tigue
Applications Engineer
National Instruments