This problem is resolved in Microsoft InfoPath 2003 Service Pack 1 (SP1). To resolve this problem, obtain the latest service pack for Microsoft Office 2003. InfoPath 2003 SP1 fully supports typed datasets and lets  you create a form from a Web service that returns an ADO.NET DataSet in InfoPath 2003. 
For additional information, click the following article number to view the article in the Microsoft Knowledge Base:
870924�
                             How to obtain the latest service pack for Office 2003
 To work around this problem, create a new Web service method that uses  the ADO.NET DataSet that is returned from the original Web service method. Then, remove the inline schema, the 
diffgram elements, and the attributes. Return the cleaned XML to InfoPath 2003. The "Workaround" section describes two possible implementations of this workaround.