Generating a web service proxy manually
When you use the VS 2005 callout template that I posted earlier you can take advantage of most of the new VS 2005 IDE features such as auto complete, IntelliSense, code snippets, etc to build your callout. However, if you need to generate a proxy to call any web service, you need to ensure that the generated proxy class can be compiled with .NET 1.1. The VS 2005 "Add Web reference" generates proxies that use the new .NET 2.0 concepts (e.g. partial classes) so to call web services (including CRM web services) you need to generate your proxy using WSDL.exe instead (BTW there might be other workarounds, let me know if you found other ones). Here is how:
1) Run this from command line:
C:\Program Files\Microsoft Visual Studio .NET 2003\SDK\v1.1\Bin>wsdl /out:myCRMProxyClass.cs http://[YOUR_SERVER_ NAME_HERE]/mscrmservices/2006/crmservice.asmx?wsdl
This will generate a myCRMProxyClass.cs.
2) Add the generated .cs file to the project that was created by Callout template targetign .NET 1.1, compile and call web services.