
In your webservice project, you have PrecompiledWeb folder, this folder contain the web service project in compiled form. Copy the content of the PrecompiledWeb, which is the CustomXmlService folder in this case to c:\inetpub\wwwroot

Now the folder is a website in the web server (but without the ability to run .NET code) so go to your IIS manager console to make this website to a web application. In the console you will see that you newly copied folder does not have a globe icon.

You can see the website in your Default Web Site, in IIS7 right click and select Convert to Application.

Still inside IIS7, a new window will pops up, click OK to accept the settings.

For IIS6 right click to open up the property page of the website

A new window will pops up, showing the default Directory tab
What you need to do is to click on the Create button on the lower half of the window
Click OK if you are not changing the application pool or execute permissions. Leave the permission at Scripts only.
To test out the web service, open it inside browser and the service description will come out.

In Visual Studio client project, delete your project Service Reference and add a new one pointing to this deployed web site.
