Namespace attribute problem with Saxon

When I export my xml source document from MicrosoftWord, the schema I used 
to
create the document is referenced in the outermost node, in this case
<List>. If I try to apply an XSLT document to this exported document, Saxon
produces nothing, but if I remove the xmlns attribute referencing the schema
from  the List element, Saxon produces the expected output from the source 
document.
Please, what's going on? Example below.
Thanks,
Mark

No output:

<?xml version="1.0"
         encoding="UTF-8"
         standalone="no"?>
<List xmlns="http://knihtisk.org/LibraryList.xsd";>
  ....
</List>

Expected output:

<?xml version="1.0"
         encoding="UTF-8"
         standalone="no"?>
<List >
................
</List>


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