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I always recieve the above error when I generate a proxy class for my service using SvcUtil. The service is exposing a property that is of System.Xml.Linq.XElement type. The SvcUtil generates a System.Xml.XmlElement type property unfortunately. On the other hand if I'm using Add Reference in VS to generate the proxy class, everything's ok. I tried the latest 4.0 version of SvcUtil from the NETFX 4.0 Tools folder, but still with no luck.