Hi George,
I have tried the sample and it works just fine for me. I even demonstrated it at the VFP 8 lauching event here at Microsoft Brasil.
Until I saw your message I haven't tried to recompile the VB.NET project; then I did this and the compilation gone fine as well (sorry, I am using VS.NET 2003 Final Beta here on my box)
Did you got the VB.NET Web Service to work or you need to change some connection string attributes in the VB.NET source code?