I've seen many users in blogs and forums around the web facing several dificulties when it comes to to webservices and encoded SOAP/XML data types. In a client application that references a web service, there might be occasions when you need to use a derived object that is defined on your web service assemblies, but isn't directly available to your application. This is because the Web Services Discovery Tool (Disco.exe) that generates code for XML Web services and XML Web service clients only serializes objects that are directly or indirectly used in its web method signatures.
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