xsd imports into a wsdl cause deployment error in SY unless placed in WEB-INF directory. I verified this. When the wsdl and schema are in WEB_-NF, the service deploys and runs fine. When I remove the WEB-INF directory, and the wsdl and schemas are in say resources/wsdl, I see the following error upon deployment:

10:30:07,844 INFO [org.apache.cxf.service.factory.ReflectionServiceFactoryBean] (MSC service thread 1-14) Creating Service {http://com.mycompany/DFFP/Services/Dispatcher}Dispatcher from WSDL: vfs:/content/DispatcherSY-0.0.1-SNAPSHOT.jar/wsdl/Dispatcher.wsdl
10:30:07,860 INFO [org.apache.cxf.endpoint.ServerImpl] (MSC service thread 1-14) Setting the server's publish address to be http://localhost:8080/dffp/Dispatcher
10:30:07,908 INFO [org.jboss.wsf.stack.cxf.deployment.WSDLFilePublisher] (MSC service thread 1-14) WSDL published to: file:/Users/jdelong/Software/Switchyard-PFP/switchyard-as7-0.5/standalone/data/wsdl/dffp.deployment/Dispatcher.wsdl
10:30:07,939 INFO [org.switchyard.component.soap.InboundHandler] (MSC service thread 1-14) WebService {http://com.mycompany/DFFP/Services/Dispatcher}Dispatcher:DispatcherServicePortType stopped.
10:30:07,940 ERROR [org.jboss.msc.service.fail] (MSC service thread 1-14) MSC00001: Failed to start service jboss.deployment.unit."DispatcherSY-0.0.1-SNAPSHOT.jar".SwitchYardService: org.jboss.msc.service.StartException in service jboss.deployment.unit."DispatcherSY-0.0.1-SNAPSHOT.jar".SwitchYardService: org.switchyard.component.soap.WebServicePublishException: java.lang.RuntimeException: Cannot publish wsdl to: /Users/jdelong/Software/Switchyard-PFP/switchyard-as7-0.5/standalone/data/wsdl/dffp.deployment/Dispatcher.wsdl
at org.switchyard.as7.extension.services.SwitchYardService.start(SwitchYardService.java:79)
at org.jboss.msc.service.ServiceControllerImpl$StartTask.startService(ServiceControllerImpl.java:1811) [jboss-msc-1.0.2.GA.jar:1.0.2.GA]
at org.jboss.msc.service.ServiceControllerImpl$StartTask.run(ServiceControllerImpl.java:1746) [jboss-msc-1.0.2.GA.jar:1.0.2.GA]
at java.util.concurrent.ThreadPoolExecutor$Worker.runTask(ThreadPoolExecutor.java:886) [classes.jar:1.6.0_29]
at java.util.concurrent.ThreadPoolExecutor$Worker.run(ThreadPoolExecutor.java:908) [classes.jar:1.6.0_29]
at java.lang.Thread.run(Thread.java:680) [classes.jar:1.6.0_29]
Caused by: org.switchyard.component.soap.WebServicePublishException: java.lang.RuntimeException: Cannot publish wsdl to: /Users/jdelong/Software/Switchyard-PFP/switchyard-as7-0.5/standalone/data/wsdl/dffp.deployment/Dispatcher.wsdl
at org.switchyard.component.soap.endpoint.JBossWSEndpointPublisher.publish(JBossWSEndpointPublisher.java:74)
at org.switchyard.component.soap.InboundHandler.start(InboundHandler.java:102)
at org.switchyard.deploy.internal.Deployment.deployServiceBindings(Deployment.java:434)
at org.switchyard.deploy.internal.Deployment.start(Deployment.java:141)
at org.switchyard.as7.extension.deployment.SwitchYardDeployment.start(SwitchYardDeployment.java:103)
at org.switchyard.as7.extension.services.SwitchYardService.start(SwitchYardService.java:72)
... 5 more
Caused by: java.lang.RuntimeException: Cannot publish wsdl to: /Users/jdelong/Software/Switchyard-PFP/switchyard-as7-0.5/standalone/data/wsdl/dffp.deployment/Dispatcher.wsdl
at org.jboss.wsf.stack.cxf.deployment.WSDLFilePublisher.publishWsdlFiles(WSDLFilePublisher.java:107)
at org.jboss.wsf.stack.cxf.deployment.EndpointImpl.publishContractToFilesystem(EndpointImpl.java:222)
at org.jboss.wsf.stack.cxf.deployment.EndpointImpl.doPublish(EndpointImpl.java:93)
at org.apache.cxf.jaxws.EndpointImpl.publish(EndpointImpl.java:239)
at org.apache.cxf.jaxws.EndpointImpl.publish(EndpointImpl.java:509)
at org.jboss.wsf.stack.cxf.configuration.NonSpringBusHolder.configure(NonSpringBusHolder.java:117)
at org.jboss.wsf.stack.cxf.deployment.aspect.BusDeploymentAspect.startDeploymentBus(BusDeploymentAspect.java:113)
at org.jboss.wsf.stack.cxf.deployment.aspect.BusDeploymentAspect.start(BusDeploymentAspect.java:66)
at org.jboss.ws.common.deployment.DeploymentAspectManagerImpl.deploy(DeploymentAspectManagerImpl.java:134)
at org.jboss.as.webservices.publish.EndpointPublisherImpl.publish(EndpointPublisherImpl.java:109)
at org.jboss.as.webservices.publish.EndpointPublisherImpl.publish(EndpointPublisherImpl.java:92)
at org.jboss.as.webservices.publish.EndpointPublisherImpl.publish(EndpointPublisherImpl.java:87)
at org.switchyard.component.soap.endpoint.JBossWSEndpoint.publish(JBossWSEndpoint.java:70)
at org.switchyard.component.soap.endpoint.JBossWSEndpointPublisher.publish(JBossWSEndpointPublisher.java:69)
... 10 more
Caused by: java.io.IOException: Cannot get URL for: WEB-INF/wsdl/schema/CDM_Types.xsd
at org.jboss.ws.common.ResourceLoaderAdapter.findChild(ResourceLoaderAdapter.java:118)
at org.jboss.ws.common.deployment.ResourceResolverImpl.resolve(ResourceResolverImpl.java:79)
at org.jboss.ws.common.utils.AbstractWSDLFilePublisher.publishSchemaImports(AbstractWSDLFilePublisher.java:223)
at org.jboss.ws.common.utils.AbstractWSDLFilePublisher.publishSchemaImports(AbstractWSDLFilePublisher.java:250)
at org.jboss.ws.common.utils.AbstractWSDLFilePublisher.publishSchemaImports(AbstractWSDLFilePublisher.java:250)
at org.jboss.ws.common.utils.AbstractWSDLFilePublisher.publishWsdlImports(AbstractWSDLFilePublisher.java:173)
at org.jboss.wsf.stack.cxf.deployment.WSDLFilePublisher.publishWsdlFiles(WSDLFilePublisher.java:91)
... 23 more

10:30:07,957 INFO [org.jboss.weld.deployer] (MSC service thread 1-11) JBAS016009: Stopping weld service for deployment DispatcherSY-0.0.1-SNAPSHOT.jar
10:30:07,971 INFO [org.jboss.as.server.deployment] (MSC service thread 1-5) JBAS015877: Stopped deployment DispatcherSY-0.0.1-SNAPSHOT.jar in 17ms
10:30:07,973 INFO [org.jboss.as.server.deployment] (MSC service thread 1-6) JBAS015876: Starting deployment of "DispatcherSY-0.0.1-SNAPSHOT.jar"
10:30:07,973 INFO [org.jboss.as.server] (DeploymentScanner-threads - 1) JBAS015863: Replacement of deployment "DispatcherSY-0.0.1-SNAPSHOT.jar" by deployment "DispatcherSY-0.0.1-SNAPSHOT.jar" was rolled back with failure message {"JBAS014671: Failed services" => {"jboss.deployment.unit.\"DispatcherSY-0.0.1-SNAPSHOT.jar\".SwitchYardService" => "org.jboss.msc.service.StartException in service jboss.deployment.unit.\"DispatcherSY-0.0.1-SNAPSHOT.jar\".SwitchYardService: org.switchyard.component.soap.WebServicePublishException: java.lang.RuntimeException: Cannot publish wsdl to: /Users/jdelong/Software/Switchyard-PFP/switchyard-as7-0.5/standalone/data/wsdl/dffp.deployment/Dispatcher.wsdl"}}
10:30:08,009 INFO [org.jboss.weld.deployer] (MSC service thread 1-12) JBAS016002: Processing weld deployment DispatcherSY-0.0.1-SNAPSHOT.jar
10:30:08,015 INFO [org.jboss.weld.deployer] (MSC service thread 1-16) JBAS016005: Starting Services for CDI deployment: DispatcherSY-0.0.1-SNAPSHOT.jar
10:30:08,016 INFO [org.switchyard] (MSC service thread 1-16) Deploying SwitchYard application 'DispatcherSY-0.0.1-SNAPSHOT.jar'
10:30:08,023 INFO [org.jboss.weld.deployer] (MSC service thread 1-12) JBAS016008: Starting weld service for deployment DispatcherSY-0.0.1-SNAPSHOT.jar
10:30:08,066 INFO [org.switchyard] (MSC service thread 1-15) Starting SwitchYard service
10:30:08,192 INFO [org.jboss.wsf.stack.cxf.metadata.MetadataBuilder] (MSC service thread 1-15) Add Service
id=org.switchyard.component.soap.endpoint.BaseWebService
address=http://localhost:8080/dffp/Dispatcher
implementor=org.switchyard.component.soap.endpoint.BaseWebService
invoker=org.jboss.wsf.stack.cxf.JBossWSInvoker
serviceName={http://com.mycompany/DFFP/Services/Dispatcher}Dispatcher
portName={http://com.mycompany/DFFP/Services/Dispatcher}DispatcherServicePortType
wsdlLocation=vfs:/content/DispatcherSY-0.0.1-SNAPSHOT.jar/wsdl/Dispatcher.wsdl
mtomEnabled=false
10:30:08,199 INFO [org.apache.cxf.service.factory.ReflectionServiceFactoryBean] (MSC service thread 1-15) Creating Service {http://com.mycompany/DFFP/Services/Dispatcher}Dispatcher from WSDL: vfs:/content/DispatcherSY-0.0.1-SNAPSHOT.jar/wsdl/Dispatcher.wsdl
10:30:08,218 INFO [org.apache.cxf.endpoint.ServerImpl] (MSC service thread 1-15) Setting the server's publish address to be http://localhost:8080/dffp/Dispatcher
10:30:08,221 INFO [org.jboss.wsf.stack.cxf.deployment.WSDLFilePublisher] (MSC service thread 1-15) WSDL published to: file:/Users/jdelong/Software/Switchyard-PFP/switchyard-as7-0.5/standalone/data/wsdl/dffp.deployment/Dispatcher.wsdl
10:30:08,224 INFO [org.switchyard.component.soap.InboundHandler] (MSC service thread 1-15) WebService {http://com.mycompany/DFFP/Services/Dispatcher}Dispatcher:DispatcherServicePortType stopped.
10:30:08,225 ERROR [org.jboss.msc.service.fail] (MSC service thread 1-15) MSC00001: Failed to start service jboss.deployment.unit."DispatcherSY-0.0.1-SNAPSHOT.jar".SwitchYardService: org.jboss.msc.service.StartException in service jboss.deployment.unit."DispatcherSY-0.0.1-SNAPSHOT.jar".SwitchYardService: org.switchyard.component.soap.WebServicePublishException: java.lang.RuntimeException: Cannot publish wsdl to: /Users/jdelong/Software/Switchyard-PFP/switchyard-as7-0.5/standalone/data/wsdl/dffp.deployment/Dispatcher.wsdl
at org.switchyard.as7.extension.services.SwitchYardService.start(SwitchYardService.java:79)
at org.jboss.msc.service.ServiceControllerImpl$StartTask.startService(ServiceControllerImpl.java:1811) [jboss-msc-1.0.2.GA.jar:1.0.2.GA]
at org.jboss.msc.service.ServiceControllerImpl$StartTask.run(ServiceControllerImpl.java:1746) [jboss-msc-1.0.2.GA.jar:1.0.2.GA]
at java.util.concurrent.ThreadPoolExecutor$Worker.runTask(ThreadPoolExecutor.java:886) [classes.jar:1.6.0_29]
at java.util.concurrent.ThreadPoolExecutor$Worker.run(ThreadPoolExecutor.java:908) [classes.jar:1.6.0_29]
at java.lang.Thread.run(Thread.java:680) [classes.jar:1.6.0_29]
Caused by: org.switchyard.component.soap.WebServicePublishException: java.lang.RuntimeException: Cannot publish wsdl to: /Users/jdelong/Software/Switchyard-PFP/switchyard-as7-0.5/standalone/data/wsdl/dffp.deployment/Dispatcher.wsdl
at org.switchyard.component.soap.endpoint.JBossWSEndpointPublisher.publish(JBossWSEndpointPublisher.java:74)
at org.switchyard.component.soap.InboundHandler.start(InboundHandler.java:102)
at org.switchyard.deploy.internal.Deployment.deployServiceBindings(Deployment.java:434)
at org.switchyard.deploy.internal.Deployment.start(Deployment.java:141)
at org.switchyard.as7.extension.deployment.SwitchYardDeployment.start(SwitchYardDeployment.java:103)
at org.switchyard.as7.extension.services.SwitchYardService.start(SwitchYardService.java:72)
... 5 more
Caused by: java.lang.RuntimeException: Cannot publish wsdl to: /Users/jdelong/Software/Switchyard-PFP/switchyard-as7-0.5/standalone/data/wsdl/dffp.deployment/Dispatcher.wsdl
at org.jboss.wsf.stack.cxf.deployment.WSDLFilePublisher.publishWsdlFiles(WSDLFilePublisher.java:107)
at org.jboss.wsf.stack.cxf.deployment.EndpointImpl.publishContractToFilesystem(EndpointImpl.java:222)
at org.jboss.wsf.stack.cxf.deployment.EndpointImpl.doPublish(EndpointImpl.java:93)
at org.apache.cxf.jaxws.EndpointImpl.publish(EndpointImpl.java:239)
at org.apache.cxf.jaxws.EndpointImpl.publish(EndpointImpl.java:509)
at org.jboss.wsf.stack.cxf.configuration.NonSpringBusHolder.configure(NonSpringBusHolder.java:117)
at org.jboss.wsf.stack.cxf.deployment.aspect.BusDeploymentAspect.startDeploymentBus(BusDeploymentAspect.java:113)
at org.jboss.wsf.stack.cxf.deployment.aspect.BusDeploymentAspect.start(BusDeploymentAspect.java:66)
at org.jboss.ws.common.deployment.DeploymentAspectManagerImpl.deploy(DeploymentAspectManagerImpl.java:134)
at org.jboss.as.webservices.publish.EndpointPublisherImpl.publish(EndpointPublisherImpl.java:109)
at org.jboss.as.webservices.publish.EndpointPublisherImpl.publish(EndpointPublisherImpl.java:92)
at org.jboss.as.webservices.publish.EndpointPublisherImpl.publish(EndpointPublisherImpl.java:87)
at org.switchyard.component.soap.endpoint.JBossWSEndpoint.publish(JBossWSEndpoint.java:70)
at org.switchyard.component.soap.endpoint.JBossWSEndpointPublisher.publish(JBossWSEndpointPublisher.java:69)
... 10 more
Caused by: java.io.IOException: Cannot get URL for: WEB-INF/wsdl/schema/CDM_Types.xsd
at org.jboss.ws.common.ResourceLoaderAdapter.findChild(ResourceLoaderAdapter.java:118)
at org.jboss.ws.common.deployment.ResourceResolverImpl.resolve(ResourceResolverImpl.java:79)
at org.jboss.ws.common.utils.AbstractWSDLFilePublisher.publishSchemaImports(AbstractWSDLFilePublisher.java:223)
at org.jboss.ws.common.utils.AbstractWSDLFilePublisher.publishSchemaImports(AbstractWSDLFilePublisher.java:250)
at org.jboss.ws.common.utils.AbstractWSDLFilePublisher.publishSchemaImports(AbstractWSDLFilePublisher.java:250)
at org.jboss.ws.common.utils.AbstractWSDLFilePublisher.publishWsdlImports(AbstractWSDLFilePublisher.java:173)
at org.jboss.wsf.stack.cxf.deployment.WSDLFilePublisher.publishWsdlFiles(WSDLFilePublisher.java:91)
... 23 more

10:30:08,236 INFO [org.jboss.as.controller] (DeploymentScanner-threads - 1) JBAS014774: Service status report
JBAS014777: Services which failed to start: service jboss.deployment.unit."DispatcherSY-0.0.1-SNAPSHOT.jar".SwitchYardService: org.jboss.msc.service.StartException in service jboss.deployment.unit."DispatcherSY-0.0.1-SNAPSHOT.jar".SwitchYardService: org.switchyard.component.soap.WebServicePublishException: java.lang.RuntimeException: Cannot publish wsdl to: /Users/jdelong/Software/Switchyard-PFP/switchyard-as7-0.5/standalone/data/wsdl/dffp.deployment/Dispatcher.wsdl