Define nillable element with content type which requires content. Try xsi:nil=false.
http://www.w3.org/TR/2001/REC-xmlschema-1-20010502/#cElement_Declarations
TEST nillable00102m - xsi:nil=false (valid schema)
| Item | Value | 
|---|---|
| title | nillable00102m - xsi:nil=false (valid schema) | 
| name | nillable00102m | 
| source | ../nillable00102m.xsd | 
| schemaName | ../nillable00102m.xsd | 
| executeClass | com.sun.jaxb_tck.sigtest.JAXBTest | 
| executeArgs | -TestURL $testURL -Plugin com.sun.jaxb_tck.sigtest.JaxbPlugin -FileName nillable00102m.sig -PackageWithoutSubpackages $package | 
| keywords | schema positive | 
| package | javasoft.sqe.tests.elemdecl.nillable.nillable00102m.nillable00102m | 
| signature | nillable00102m.sig | 
TEST nillable00102m1_p - xsi:nil=false (valid schema)
| Item | Value | 
|---|---|
| title | nillable00102m1_p - xsi:nil=false (valid schema) | 
| name | nillable00102m1_p | 
| source | ../nillable00102m.xsd | 
| schemaName | ../nillable00102m.xsd | 
| executeClass | javasoft.sqe.tests.api.jakarta.xml.bind.JAXBTest | 
| executeArgs | -TestURL $testURL -package $package -out :ref -document ../nillable00102m1_p.xml -pcontent nillable00102m-nillable00102m1_p.jbx | 
| keywords | positive document | 
| package | javasoft.sqe.tests.elemdecl.nillable.nillable00102m.nillable00102m | 
| document | ../nillable00102m1_p.xml | 
| jb-context | nillable00102m-nillable00102m1_p.jbx |