I am using Web API with DataContract serialization.
The output looks like this:
<Data>
<Status>
  <Date>2014-08-13T00:30:00</Date>
  <ID>312</ID>
  <Option>No Limitation</Option>
  <Value i:nil="true" />
</Status>
<Status>
  <Date>2014-08-13T01:00:00</Date>
  <ID>312</ID>
  <Option>No Limitation</Option>
  <Value i:nil="true" />
</Status>
<Status>
  <Date>2014-08-13T01:30:00</Date>
  <ID>312</ID>
  <Option>No Limitation</Option>
  <Value i:nil="true" />
</Status>
<Status>
  <Date>2014-08-13T02:00:00</Date>
  <ID>312</ID>
  <Option>No Limitation</Option>
  <Value i:nil="true" />
</Status>
I was able to remove all the extra namespaces by doing:
[DataContract(Namespace="")]
public class Status
But the only attribute left is the i:nil attribute.
What should i do in order to remove the i:nil attribute?
You need to set the EmitDefaultValue property in the DataMember attribute 
[DataMember(EmitDefaultValue = false)]
Be sure not to set this attribute on members that have the IsRequired = true set to them.
Edit
You may also iterate the XML manually and remove the nil attributes using LINQ 2 XML:
XNamespace i = "http://www.w3.org/2001/XMLSchema-instance";
        XDocument xdoc = XDocument.Load(@"XmlHere"); // This may be replaced with XElement.Parse if the XML is in-memory
        xdoc.Descendants()
                 .Where(node => (string)node.Attribute(i + "nil") == "true")
                 .Remove();
                        What you want is to make the code "think" that instead of having a null value, it actually has an empty string. You can do that by being a little smart with the property getter (see below). Just remember to add a comment explaining why you're doing that so other people who will maintain the code know what's going on.
[DataContract(Namespace = "")]
public class Status
{
    [DataMember]
    public DateTime Date { get; set; }
    [DataMember]
    public int ID { get; set; }
    [DataMember]
    public string Option { get; set; }
    private string value;
    [DataMember]
    public string Value
    {
        get { return this.value ?? ""; }
        set { this.value = value; }
    }
}
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