"Add service reference" is disabled
In Visual Studio 2008 you can right-click a project and choose for “Add service reference” to create a proxy class for your web service. WCF preferred, of course.
But for some reason, the Visual Studio team disabled it when you’re in debug mode. Something that used to work in Visual Studio 2005, so after starting a host, you could add the reference. In VS2008 this is disabled, or grayed out’.
The solution is to set your host as startup project, press CTRL-F5 so it’ll be started without debugging and then you’re able to choose to add the service reference.