finally fixed the problem, i am not sure if this was documented but although the xml was well formed, code synthesis was looking for the following lines within xml : . so the working xml looks like the following:
<?xml version="1.0" encoding="UTF-8"?>
<!-- Document created with online XML Editor http://xmlgrid.net 2013/09/08 2:17:41 -->
<quantoptions xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xsi:noNamespaceSchemaLocation="schema.xsd" dburl="test attribute">
<option>
<symbol>test string</symbol>
<dateselection enddate="2002-09-24" startdate="2002-09-24"></dateselection>
</option>
<option>
<symbol>test string</symbol>
<dateselection enddate="2002-09-24" startdate="2002-09-24"></dateselection>
<blackscholes>false</blackscholes>
<volatility>true</volatility>
</option>
</quantoptions>