The problem is that control-to-DOM binding is different for a section and a repeating section.
Sometimes when I get stuck like this I like to get down to the metal and do things manually. If you are so daring, I would create a separate blank form, add in a section and a repeating section. Add a node in each. Extract the form files and compare the difference between the section and repeating section in myschema.xsd and view1.xsl. There's probably only some trivial differences that you can manually make to your existing form (make a backup first!) to where the next time you open it in the designer, poof! it's upgraded to a repeating section.
This suggestion is not for the light of heart and not for those with no experience in XML, XSL, and XSD
Greg Collins / Microsoft MVPQdabra® Software / Streamline data gathering to turn process into knowledge