see http://michaelshim.com/blog/2009/12/10/use-xamlreader-load-for-wpf-xaml-not-xamlservices-load for some details.

It depends what you are trying to do with your XamlNode loop...

You could use the Wpf SchemaContext + your code (pass it to the constructor of the XamlXmlReader), and you'll get pass this binding problem.  But there are other things in XamlReader.Load() that won't happen. See the blog post for the list.

Thanks,
Rob Relyea, WPF Team
http://robrelyea.com/blog | http://twitter.com/rrelyea