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Judging by the error, it looks like the xsd can not be constructed.
I would start of by checking if the target location is defined in the Intergration Broker.
PeopleBooks > PeopleTools 8.52: PeopleSoft Integration Broker Administration > Configuring PeopleSoft Integration Broker for Handling Services > Using the Target Locations Page to Set Target Locations for Services
Just saw this doc on MOS
E-BI/XMLP: Error "java.lang.NoSuchMethodError" Received When Creating Or Opening A Report Definition [ID 1077734.1]
stating xmlparserv2-904.jar should be removed from the the classpath and from PS_HOME\classes dir.
See the MOS doc for the detailed steps to take to solve your issue.