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+++ This bug was initially created as a clone of Bug #368067 +++ We need to solve the problem of respecting the XML -> XML Schema Files-> Honour All Schema Locations preference when validating Schemas. The important thing here is that we invoke the validator using the signature validate(String, Inputstream, NestedValidatorContext). The reason is because the XSD we want to validate may or may not be in the workspace. When this method is called, the setupValidation method of org.eclipse.wst.xsd.core.internal.validation.eclipse.Validator class is not called and it is in that setupValidation method where the preference is set into the XSD Configuration object used by the validator. This method is only called when invoking the method signature validator(IResource, int, ValidationState, IProgressMonitor).
Created attachment 210411 [details] patch
Code checked in.