Web service Parser Error Message: Could not create type 'xxx'
Also, check to ensure that build output path is to the "bin\" folder ONLY. A Web Service project cannot use the DLL files generated if they are stuck under "bin\Debug\AnyCPU" or "bin\Release\x86".
A colleague and myself spent 2 hours trying to make a Web Service project work on a new workstation that had worked perfectly on an old machine.
Hope this tip helps someone else using Google!
I got the same error, in my case resolution was to use full qualified class name (class name with namespace) in the .asmx file.
<%@ WebService Language="C#" CodeBehind="~/App_Code/AuthenticateUser.cs" Class="AuthenticateUser" %>
would become
<%@ WebService Language="C#" CodeBehind="~/App_Code/AuthenticateUser.cs" Class="MyProjectName.AuthenticateUser" %>