>1.) What data type can be pass as parameter to a web-service method. Is it the same like a normal UDF (Any type Character, numeric, date integer etc..) or does it have to be an XML file only?

- it understand any data type as parameters to WS

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>2.) What data type can the WS method returns? Any or XML file only?

- one parameter as any type. (but usualy I return table which transfer on a server side to XML file and back to cursor at the client side)

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>3.) How do I implement distribution? Does the computer that provides the service need to have VFP installed in order to register the service?
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- you need to distribute as usual - your application + VFP runtime library + SOAP 3.0 package (usually I give it to client separatelly and istall once)... If you need to install WS on a client server - I usually do it by myself remotely and continue support updates (in this case I use full VFP version)...

P.S. I hope my message helps you a little bit...