I've tried xjc with episodes from command line and via com.sun.tools.xjc.api.XJC
and both ways are working fine.
SchemaCompiler sc = XJC.createSchemaCompiler();
InputSource file = new
InputSource episode = new
File("/Users/pavel/jaxb/bugs/514/tryout2/a.jar")); // works too
S2JJAXBModel model = sc.bind();
JCodeModel jcm = model.generateCode(null, null);
It is working even with xsd and episode you've provided with testcase (after
fixed typos in file wrap.xsd (complesElement and AbstrcatType).
In uploaded testase you're checking for Hello class but it's already present in
episode file so xjc won't generate it. I'm not sure if I understood this
correctly so please reply if I'm missing something.