This is basically the issue mentioned at http://stackoverflow.com/questions/7148591/microsoft-webservice-and-cxf-client-jaxb-fails-to-understand-sschema .
The wsconsume (internally relying on CXF tooling) is failing to process wsdls containing <s:element ref="s:schema" /> where s:schema is the schema s:element is defined into. This looks to be an interoperability issue with Microsoft generated contracts.