Parser Error - Could not create type 'XXX'

i was creating a small test web service.
when i wanted to test it, but adding reference to another project, i got this error in the wizard 'Parser Error - Could not create type 'XXX''
and it suggested that i check the proxy settings blah-blah-blah
a quick search on google got me this, but i quickly found out the actual reason when i went to the iis settings - my test service was in .net 2.0, while the settings for the virtual directory were for .net 1.1
after i changed this all went smoothly....

just 2c...