You'd have to post the WSDL for me to be sure, but "Web Service Returns Null" almost always means there's a dispute about XML Namespaces - the service is sending you data in one namespace, and .NET is expecting a different namespace.
In this case, note that most of the response is in the default namespace, even though the wrapper element is in the http://MyCompany.com/SomeCompany/mm/MaterialMasterSearch
namespace.
John Saunders
2010-04-13 19:55:00