Help XML, Namespace, SOAP

[Bryce]

I've no clue how to get further:
I have the following xml schema:

<xs:schema xmlns:xs="http://www.w3.org/2001/XMLSchema"
xmlns:xsi="http://www.w3.org/1999/XMLSchema-instance"
xmlns:SOAP-ENV="http://schemas.xmlsoap.org/soap/envelope/" >
<xs:include schemaLocation="myschema.xsd" />
<SOAP-ENV:Envelope>
<SOAP-ENV:Body>
<xs:element name="Test" type="testType"/>
</SOAP-ENV:Body>
</SOAP-ENV:Envelope>
</xs:schema>

then I have the schema (which is included in the above one, called
"myschema.xsd")

<xs:schema xmlns:xs="http://www.w3.org/2001/XMLSchema">
<xs:element name="Test" type="TestType" />
<xs:complexType name="TestType">
<xs:sequence>
<xs:element name="Name" type="xs:string" />
<xs:element name="Location" type="xs:string" />
</xs:sequence>
</xs:complexType>
</xs:schema>

My instance looks like that:
<?xml version='1.0' encoding='UTF-8' ?>
<SOAP-ENV:Envelope xmlns:SOAP-ENV="http://schemas.xmlsoap.org/soap/envelope/"
xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance"
xmlns:xsd="http://www.w3.org/2001/XMLSchema">
<SOAP-ENV:Body>
<Test>
<Name>Clinton</Name>
<Location>Whitehouse</Location>
</Test>
</SOAP-ENV:Body>
</SOAP-ENV:Envelope>

Is this correct? is this a soap message? or just xml?
When I use
<xs:include schemaLocation="myschema.xsd" />
where do I have to place the file for the schema "myschema.xsd"?