Im trying to seaparate Application Logic into different class libraries (reusability)

I have all data access logic in one clas slibrary, business logic in another etc.

Now I want the webServices in their own class library...not in the Web Application Project/ UI Frontend.

I Tried the Following

Adding a Service Reference to my Web App project....this created a Proxy in the web.config...GREAT!

<system.serviceModel>
    <bindings>
      <basicHttpBinding>
        <binding name="ObjectManagerSoap" closeTimeout="00:01:00" openTimeout="00:01:00"
          receiveTimeout="00:10:00" sendTimeout="00:01:00" allowCookies="false"
          bypassProxyOnLocal="false" hostNameComparisonMode="StrongWildcard"
          maxBufferSize="65536" maxBufferPoolSize="524288" maxReceivedMessageSize="65536"
          messageEncoding="Text" textEncoding="utf-8" transferMode="Buffered"
          useDefaultWebProxy="true">
          <readerQuotas maxDepth="32" maxStringContentLength="8192" maxArrayLength="16384"
            maxBytesPerRead="4096" maxNameTableCharCount="16384" />
          <security mode="None">
            <transport clientCredentialType="None" proxyCredentialType="None"
              realm="" />
            <message clientCredentialType="UserName" algorithmSuite="Default" />
          </security>
        </binding>
      </basicHttpBinding>
    </bindings>
    <client>
      <endpoint address="http://localhost:5839/ObjectManager.asmx"
        binding="basicHttpBinding" bindingConfiguration="ObjectManagerSoap"
        contract="ServiceReference1.ObjectManagerSoap" name="ObjectManagerSoap" />
    </client>
  </system.serviceModel>

Now I try to use the following Jquery to consume it

 function Greeting() {
        $.ajax({
            url: "http://localhost:5839/ObjectManager.asmx/HelloWorld",
            type: "POST",
            data: "{}",
            dataType: "xml",
            success: Success,
            error: ajaxFailed
        });
}

Function Ajax Failed returns

0  Error

function ajaxFailed(xmlRequest) {
        alert(xmlRequest.status + ' \n\r ' +
          xmlRequest.statusText + '\n\r' +
          xmlRequest.responseText);
    }

Ive moved the exact same WebService into the Web Application Project...and it works
Once I move it to a Class Library outisde...I cant seem to reference it / find it.