In many scenarios we may have to use local temp tables in procedures instead of functions returning tables. Always, temp tables are best in performance. When there is any temp table involved in an sp, say for reporting, VS.Net will not allow you to generate a typed dataset (.xsd) out of that.
1. Comment the lines containting temp tables in sp
2. Generate .xsd file in .net IDE
3. Uncomment the comments
Yeah!!! It worked