I use this code and it works great:
System.Xml.XmlDocument xd = new System.Xml.XmlDocument;
xd.Load("http://www.webservice.com/webservice?fXML=1");
string xPath = "/xml/somekey";
// this node's inner text contains "somevalue"
return xd.SelectSingleNode(xPath).InnerText;
EDIT: I just realized you're talking about a webservice and not just plain XML. In your Visual Studio Solution, try right clicking on References in Solution Explorer and choose "Add a Web Reference". A dialog will appear asking for a URL, you can just paste it in: "http://www.webservice.com/webservice.asmx". VS will autogenerate all the helpers you need. Then you can just call:
com.webservice.www.WebService ws = new com.webservice.www.WebService();
// this assumes your web method takes in the fXML as an integer attribute
return ws.SomeWebMethod(1);