I am trying to deploy a web service for the first time on our remote server.  This web service works fine locally.

First I just moved the asmx and DLL, and I was getting the dreaded "The file has not been precompiled", so I created a Web Deployment Project and I DID precompile it into a single DLL.  However, I am STILL getting this error when I try to browse to it.

On the server (Windows 2003 using IIS 6.0) I created a subdirectory of an existing web site, and made it into a virtual directory and an application.  I made sure it was using ASP.NET 2.0.  I made sure it was using the right Application Pool.  Then I moved up the following files to the server:

asmx file
web.config
several datasets that it uses to connect to a database (xsd, xss, xsc files) 
the DLL that it was compiled into (in the bin directory)
PrecompiledApp.config

When I attempt to browse to www.ourwebsite.com/WebServiceFiles/webservice.asmx, I get the "file webservice.asmx has not been precompiled" error. What is the trick to getting this to work?  All the documentation insists that deploying web services is a simple as toast, but I am not finding that to be the case!

Well.. is your web site precompiled?  If not, remove the precompile.config (or something like that on the server)

Please refer the below link,

http://www.velocityreviews.com/forums/t120117-error-when-moving-a-vs-2005-precompiled-site-to-test-server.html 

Actually, I discovered the problem was, I was trying to reference the web service using the physical folder name instead of the virtual folder name. 

Duh! Never mind -- all is well.