You don't need to publish them as a DLL. If you don't use CodeBehind and put code into the ASMX file then the file can be shipped without a bin directory and the compiled code. It will compile on the fly just like ASPX pages do when there's no codebehind.
Not recommended though and it doesn't really make a difference. The DLL is a .NET DLL and does EXACTLY the same thing as the on the fly compiled code, so any ISP that doesn't understand this is probably not a good choice to choose as an ISP for .NET applications of any sort...
+++ Rick ---
>John,
>
>>Is it possible to have ASP.NET written web services without compile it to DLL???
>>I used to enquiry couples of web host vendor. They tell me that, their web host allow me to publish my web services. However, when I tell them that is DLL, they said CANNOT!
>>I am confusing of it. Any ideas?
>
>You do need to compile your Web service in order to run it. Your Web Service DLL is what contains Microsoft Intermediate Language (MSIL).
>
>Fortunately, there are a good number of Internet Service Providers who are set up to run .NET Web Services and Web Forms applications. To find a list of some of these, go to the Start page of Visual Studio .NET and select "Web Hosting" in the left hand side of page. Check out the "Premium Providers" and "Additional Providers" tabs for a list of ".NET ready" ISPs.
>
>Regards,