I know this isn't what you asked, but I think you should have another layer in there, rather than accessing the SQL Server directly from the Web Service.
Here's how we've laid out our tiers:
We have a DataAccess layer ... this is the *only* way to access the SQL database (we also throw in an additional Business layer that make calls to the DataAccess layer, but that may or may not be overkill for what you're doing). The WebServices are simply wrappers around the calls to the DataAccess layer's methods (or the Business layer's methods, if you use that methodology). The WebServices never access the SQL Server database directly.
Like I said, this has nothing to do with your problem ... but I think it's a good design to follow.
Just my 2 cents.
~~Bonnie
>Follow-up question...I got past the Web Service issue by running the utility you mentioned, but now I'm having another problem.
>
>I have a SQL Connect string that is not running correctly when I try to connect to SQL through my Web Service. The SQL string works fine when I go straight from my WinForm to SQL Server, but I get a variety of 'cannot find server' or 'cannot open sql server' messages when I try to access SQL server through my web service.
>
>I'm about 100% sure that the connection string is correct and that SQL Server is running fine...would there be any other utilities or setups I'd need to run if I'm on a machine that had .NET installed first and then IIS installed later?
>
>Thanks,
>Kevin