As an additional note, note that by default VS 2010 will add the Web Service as a service under this new way of doing things. This will not allow you to fully manipulate the properties of the Web Service object such as when we did it in .NET Framework 2.0. If you wish to be able to switch the URL of the Web Service object at run time, for example, you will have to click on Advanced and then on "Compatibility\Add Web Reference".
You will probably find some threads about it back in August/September of last year when I faced that situation. In one situation, the project serves for development and multiple production servers. So, the proper URL is not known at design time, or at least, we cannot know in advance to which one we will bounce it at run time. It depends on some client's configuration who use it. For example, when I want to test, I use the same EXE but based on some remote configuration, after the first hit to the main server, it knows that it has to switch me to the development server, thus something like this happens:
oWebService.Url = cUrl + "/WebService/WebService.asmx"