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May 08, 2010 05:51 PM|LINK
This was not quite my scenario but here is what fixed for me....
My AuthorizationService.svc was in <MyApp>.Web and the webconfig file for that app had Forms Based Authentication....
Changed it to:
For me the lesson was that i should have tried to navigate to the service on the local machine like this:
http://localhost:1452/AuthorizationService.svc because I once I did, I got the access denied message and understood what was wrong.
I needed to add a method to the webservice, once i updated it, I returned to forms based auth.