Actually you're a great help! It gave confidence that what I did was fine and it turned to be the case. The only problem was that the assembly didn't come in immediately. Much later after I added the reference, I got a message saying that "web.config was modified outside....do you want to reload..." and I said "yes". There, it is, the assembly showed up in my web.config file. And it works now!
We need to let people know about the delay of the added reference being effective...for some reason on some cases....
I do have a second question and would appreciate your help. Do you have a sample code to invoke the Webservice from a Browser or JS client code? I understand that I can't test the Webmethod as Query String via URL with parameters passed in, although, that's a preferred way for me.
Many thanks again!