My {bindings} section in web.config looks like this:

{bindings}
{customBinding}
{binding name=”customBinding0″}
{binaryMessageEncoding /}
{httpTransport authenticationScheme=”Negotiate” /}
{/binding}
{/customBinding}
{/bindings}

Hope the following is useful to someone…

I use binary message encoding to make things a little faster. My element looks like this:

I also had problems because we use urls on our intranet in the form http://servername/etc/etc while the service reference generated by VS uses an alias, eg. http://servername.domain.blah.blah/etc/etc. IE doesn’t recognise this alias as being on our Intranet, so challenges the user with a password request screen.

This was easily fixed by modifying the ServiceReferences.ClientConfig file and replacing the longer alias with the short form. IE then recognises this as being on the Intranet and silently passes the credentials.

You can control whether or not IE does this from (IE 7/8) Tools | Internet Options | Security | Custom Level then locating User Authentication and selecting “Automatic logon only in Intranet zone” or “Automatic logon with current user name and password”. (The latter would be dangerous.)

Thanks a lot.

Even after adding the MIME Types (.xap/.xaml/.xbap) i still get the error 2104 in step 15. Any ideas how to go about it.
I am using .net 3.5 with Silverlight 3 and WCF enabled service in it.

Thanks,
Siddharth

Also, I could not make it work in sharepoint 2007.