I discovered an issue in VS 2008 Beta 2 that will most likely be an issue when the product goes to RTM. I notified Microsoft of the issue and they have pushed this back to VS 2008 SP1 because its so late in the development process. The issue is with adding
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Read the complete post at http://weblogs.asp.net/jgaylord/archive/2007/09/19/visual-studio-2008-web-service-issue.aspx