With the latest web service pack build(b56), I've added the line
javax.xml.transform.TransformerFactory=org.apache.xalan.xsltc.trax.TransformerFactoryImpl to the JWSDP_HOME/conf/jwsdp.properties file. This ensures that xsltc.jar gets picked up instead of xalan.jar for Transformation apis.

Importing the SEI with xrpcc with this setup/configuration is causing it to generate a WSDL without complete namespace declarations(Error is undeclared prefix -ns2, see attached WSDL). This causes it not be imported back by xrpcc. Attached is such a WSDL file.