IM using Windows 2003 Standard Edition SP2  as my Webserver. I am Unbale to call SOAP files(which are placed in the webserver) from my ASP.NET application from anywhere in the network.

I have Created the Virtual Directories also and gave everyone rights to the Folder.

 When i run my application it creates a proxy of the client and calls for SOAP file...

It Gives error The Remote server Returned an error (401) Unauthorised

If i copy the same folder put in any XP machine and Create virtual directory and call that path from ASP.NET application it works FINE.

Tried search in Google didnt came up with exact solution...

has anyone come up with such a bizzarre incident.....

401 Unauthorized is usually an authentication problem.

since its win2k3 u would be using IIS 6.0

check the Application pool identity.

Are you using Anonymous access for your website/virdir ?

Try using File  monitor to verify the user account that is trying to access your file.

I'm assuming the files are local and the neccessary ACLs are given to the folders.

hth

 Did you try using File Monitor to check which account is trying to access your SOAP files. most likely its the ASPNET account. but its better to verify