So I start VS and try to put something what in my opinion is the name of a tool: XSD.EXE and VS gave me the message that, that tool cannot be found.

Picture 1 Setting Custom Tool ( With wrong value )
Picture 2 – Running custom tool ( with wrong settings )
Picture 3 – Result
So what next is there magic word for declaring Custom Tool to use XSD.EXE which is default when you use DataSet schema?
Yes, put MSDataSetGenerator in Custom Tool property and that will do the Magic.
Picture 4 – Setting the property
Picture 5 – Run the tool
And …
Picture 6 – XMLSchema1.cs is created