Here is the web service:

DEFINE CLASS SimpleService AS Session OLEPUBLIC

PROCEDURE Init
ENDPROC

PROCEDURE Destroy
ENDPROC

PROCEDURE Error(nError, cMethod, nLine)
ENDPROC

FUNCTION status()
	RETURN "Hello"
ENDFUNC 

ENDDEFINE

Here is the error:

Error: 1429 - OLE IDispatch exception code 0 for Connector... 
HRESULT=0x800A1527 - CLient: An unanticipated error occured ... no 
recognizable response was received....

I am having the same issue with my real web service and tried this simple one to attempt to determine source. I have tried on several machines and have performed the same steps that have worked before including registering the dll, configuring the web service for ASP, etc.