>Verify on IIS - Web Site - Web Project - .NET Tab that you are running the correct version on .NET for your services. I have encounter strange issue when I have the incorrect version of .NET running, so now I make it a habit to check and make sure my .NET code is running the correct version because I have both 1.1 and 2.0 active projects.

And, even if it is correct, having both version on the server has caused me some problems as well. I discover that in the last months. As soon as 1.1 was removed, 2.0 was working ok. What we experienced was that having 1.1 and 2.0 on the server, even if 2.0 was assigned to the IIS Web site, it was not responding after a while. Once 1.1 was removed, we never encountered that situation again.