remove the element tag.. use only the simple type, like in this example:
> <xsd:simpleType name="Product">
> <xsd:restriction base="xsd:string">
> <xsd:enumeration value="Product1"/>
> <xsd:enumeration value="Product2"/>
> <xsd:enumeration value="Product3"/>
> </xsd:restriction>
> </xsd:simpleType>
and then jaxb will generate an Enum..