You receive a "BEC2004: XSD2EDI failed to convert XSD: Compiling repository failed" error message when you try to run the Base EDI tutorial in BizTalk Server 2004 (883549)

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When you are running the Base EDI tutorial, the account that you use to log on must be a member of the EDI Subsystem Users group. Additionally, if the BizTalk Base EDI service is running by using a local account, you cannot log on to the computer that is running BizTalk Server by using a domain account. If the BizTalk Base EDI service is running as a local account, you must log on to the computer that is running BizTalk Server by using a local account. If the BizTalk Base EDI service is running by using domain credentials, you can log on by using a domain account or a local account, as long as both accounts are part of the EDI Subsystem Users group.

The BizTalk Base EDI service uses the NetUserGetLocalGroups API. If the BizTalk Base EDI service is configured to use a local account, and you are logged on by using a domain account, any calls that the service makes to NetUserGetLocalGroups API are not successful. This problem occurs because the calls force a Microsoft Windows NT challenge when BizTalk Base EDI service tries to enumerate the local groups for the domain account.