Hi,
Web services are not supported in this version. The statement will retrieve XML data returned by some URL in the response stream.
As workaround, you can write some web page (whatever the technology) that will call your web service and will then return the resulting XML (i.e.: Response.Write(yourXmlData). You will then have your XmlQuery statement points to this web page.
This KB article provides an example for returning data from SQL. Of course this approach is not necessary anymore for retrieving SQL data but you can apply the same principles for retrieving data from your Web Service.
Regards,