Question

how can I create XML Schema which can preserve space in the xml …

Answer 1

you mean you wannt to create xml schema that can preserve the space in xml ,
If that is the question then here is the ans below

The element which you want to preserve the space just create your own data type for that element.
For Ex:-

 <xs:simpleType name="TitleString">
   <xs:restriction base="xs:string">
     <xs:whiteSpace value="preserve"/>
       <xs:minLength value="5"/>
       <xs:maxLength value="230"/>
   </xs:restriction>
 </xs:simpleType>

and use this type in your element .
tell me if you find any prob.