I think you are onto something here. I looked at the event log and found the following:
Event Type: Error
Event Source: System.ServiceModel 3.0.0.0
Event Category: WebHost
Event ID: 3
Date: 12/8/2009
Time: 4:06:19 PM
User: NT AUTHORITY\NETWORK SERVICE
Computer: USHAGN047
Description:
WebHost failed to process a request.
Sender Information: System.ServiceModel.ServiceHostingEnvironment+HostingManager/24230272
Exception: System.ServiceModel.ServiceActivationException: The service '/Silverlight/Services/SilverlightApplication7-Client-Web-CTCService.svc' cannot be activated due to an exception during compilation. The exception message is: IIS specified authentication schemes 'IntegratedWindowsAuthentication, Anonymous', but the binding only supports specification of exactly one authentication scheme. Valid authentication schemes are Digest, Negotiate, NTLM, Basic, or Anonymous. Change the IIS settings so that only a single authentication scheme is used.. ---> System.InvalidOperationException: IIS specified authentication schemes 'IntegratedWindowsAuthentication, Anonymous', but the binding only supports specification of exactly one authentication scheme. Valid authentication schemes are Digest, Negotiate, NTLM, Basic, or Anonymous. Change the IIS settings so that only a single authentication scheme is used.
at System.ServiceModel.Web.WebServiceHost.SetBindingCredentialBasedOnHostedEnvironment(ServiceEndpoint serviceEndpoint, AuthenticationSchemes supportedSchemes)
at System.ServiceModel.Web.WebServiceHost.AddAutomaticWebHttpBindingEndpoints(ServiceHost host, IDictionary`2 implementedContracts, String multipleContractsErrorMessage)
at System.ServiceModel.Web.WebServiceHost.OnOpening()
at System.Web.Ria.Services.ServiceUtility.WebServiceHostInspector.OnOpening()
at System.ServiceModel.Channels.CommunicationObject.Open(TimeSpan timeout)
at System.ServiceModel.Channels.CommunicationObject.Open()
at System.Web.Ria.Services.ServiceUtility.WebServiceHostInspector.Inspect()
at System.Web.Ria.Services.ServiceUtility.get_CredentialType()
at System.Web.Ria.Services.DomainServiceHost.AddRestWithJsonEndpoint(Uri baseAddress)
at System.Web.Ria.Services.DomainServiceHost.AddEndpoints()
at System.Web.Ria.Services.DomainServiceHost.ApplyConfiguration()
at System.ServiceModel.ServiceHostBase.InitializeDescription(UriSchemeKeyedCollection baseAddresses)
at System.ServiceModel.ServiceHost.InitializeDescription(Type serviceType, UriSchemeKeyedCollection baseAddresses)
at System.Web.Ria.Services.DomainServiceHost..ctor(Type domainServiceType, Uri[] baseAddresses)
at System.Web.Ria.Services.DomainServiceHostFactory.CreateServiceHost(Type serviceType, Uri[] baseAddresses)
at System.ServiceModel.Activation.ServiceHostFactory.CreateServiceHost(String constructorString, Uri[] baseAddresses)
at System.ServiceModel.ServiceHostingEnvironment.HostingManager.CreateService(String normalizedVirtualPath)
at System.ServiceModel.ServiceHostingEnvironment.HostingManager.ActivateService(String normalizedVirtualPath)
at System.ServiceModel.ServiceHostingEnvironment.HostingManager.EnsureServiceAvailable(String normalizedVirtualPath)
--- End of inner exception stack trace ---
at System.ServiceModel.ServiceHostingEnvironment.HostingManager.EnsureServiceAvailable(String normalizedVirtualPath)
at System.ServiceModel.ServiceHostingEnvironment.EnsureServiceAvailableFast(String relativeVirtualPath)
Process Name: w3wp
Process ID: 3320
For more information, see Help and Support Center at http://go.microsoft.com/fwlink/events.asp.
I remember seeing something about WCF activation else where. I did not look into it because I have another project on the same server that is using WCF Silverlight enabled service and it is working fine. I'll look into it this morning. Thank you for pointing in the right direction about Fiddler body message.