As Mark stated, there is no easy work-around. However, I have had to do this myself in the past and the way that I solved it was by using XQuery, specifically flwor so that I had quite granular control on the construction of the xml. So if i was to take your example query (i developed this against AdventureWorks2008R2 by the way) and put it through the approach that had to take, it would look like the following:

with xmlnamespaces (DEFAULT 'uri2')

SELECT XmlStructure.query('declare default element namespace "uri2";

for $x in /root return

<root xmlns="uri2" xmlns:ns1="uri1">

{

for $y in $x/ProductModelData return

<ProductModelData>

{attribute ns1:ProductModelID {$y/ProductModelID}}

{attribute ns1:ProductModelName {$y/ProductModelName}}

{attribute ns1:ProductIDs {$y/ProductIDs}}

<ns1:ProductNames>

{for $z in $y/ProductNames/row return

<row>

{attribute ns1:ProductID {$z/ProductID}}

{attribute ns1:ProductName {$z/ProductName}}

</row>

}

</ns1:ProductNames>

</ProductModelData>

}

</root>')

FROM

(

SELECT

(

SELECT ProductModelID AS "ProductModelID",

Name AS "ProductModelName",

(

SELECT ProductID AS "data()"

FROM Production.Product

WHERE Production.Product.ProductModelID =

Production.ProductModel.ProductModelID

FOR XML PATH ('')

) AS "ProductIDs",

(

SELECT ProductID AS "ProductID",

Name AS "ProductName"

FROM Production.Product

WHERE Production.Product.ProductModelID =

Production.ProductModel.ProductModelID

FOR XML PATH, type

) AS "ProductNames"

FROM Production.ProductModel

WHERE ProductModelID= 7 OR ProductModelID=9

FOR XML PATH('ProductModelData'), root('root'), TYPE

) XmlStructure

) x

basically, what I am doing is creating an xml blob with the sort of structure that i want to return but without the namespaces and then with that, I am using XQuery to essentially create it again with the namespaces at the top level and not all over the place. Running the above code on my instance gives me the following xml:

<root xmlns="uri2" xmlns:ns1="uri1">

<ProductModelData ns1:ProductModelID="7" ns1:ProductModelName="HL Touring Frame" ns1:ProductIDs="885 887 888 889 890 891 892 893">

<ns1:ProductNames>

<row ns1:ProductID="885" ns1:ProductName="HL Touring Frame - Yellow, 60" />

<row ns1:ProductID="887" ns1:ProductName="HL Touring Frame - Yellow, 46" />

<row ns1:ProductID="888" ns1:ProductName="HL Touring Frame - Yellow, 50" />

<row ns1:ProductID="889" ns1:ProductName="HL Touring Frame - Yellow, 54" />

<row ns1:ProductID="890" ns1:ProductName="HL Touring Frame - Blue, 46" />

<row ns1:ProductID="891" ns1:ProductName="HL Touring Frame - Blue, 50" />

<row ns1:ProductID="892" ns1:ProductName="HL Touring Frame - Blue, 54" />

<row ns1:ProductID="893" ns1:ProductName="HL Touring Frame - Blue, 60" />

</ns1:ProductNames>

</ProductModelData>

<ProductModelData ns1:ProductModelID="9" ns1:ProductModelName="LL Road Frame" ns1:ProductIDs="722 723 724 725 726 727 728 729 730 736 737 738">

<ns1:ProductNames>

<row ns1:ProductID="722" ns1:ProductName="LL Road Frame - Black, 58" />

<row ns1:ProductID="723" ns1:ProductName="LL Road Frame - Black, 60" />

<row ns1:ProductID="724" ns1:ProductName="LL Road Frame - Black, 62" />

<row ns1:ProductID="725" ns1:ProductName="LL Road Frame - Red, 44" />

<row ns1:ProductID="726" ns1:ProductName="LL Road Frame - Red, 48" />

<row ns1:ProductID="727" ns1:ProductName="LL Road Frame - Red, 52" />

<row ns1:ProductID="728" ns1:ProductName="LL Road Frame - Red, 58" />

<row ns1:ProductID="729" ns1:ProductName="LL Road Frame - Red, 60" />

<row ns1:ProductID="730" ns1:ProductName="LL Road Frame - Red, 62" />

<row ns1:ProductID="736" ns1:ProductName="LL Road Frame - Black, 44" />

<row ns1:ProductID="737" ns1:ProductName="LL Road Frame - Black, 48" />

<row ns1:ProductID="738" ns1:ProductName="LL Road Frame - Black, 52" />

</ns1:ProductNames>

</ProductModelData>

</root>

I'm not saying that this is ideal, and i'm not sure how much extra overhead is required to do this, but it is possible - just not quick/easy!

Hope it helps.