Hello Heinrich,

I had exactly the same problem. Finally, here's my solution.

Follow these steps in correct order:

1) You are right, there's is no 'referece.cs' proxy class anymore but you
still can generate it with the wsdl.exe tool from the .Net 2.0 Framwork.
That also means, that you first have to remove the web references in your
WebClient project. Afterwards generate the proxy class with this command

=> wsdl.exe /out:myProxyClass.cs
=>           http://hostServer/WebserviceRoot/WebServiceName.asmx?WSDL

2) This step is the important one. The newly generated proxy class must be
modified to use the real objects. Open the class in Code View and remove the
skeleton class definitions from the file. Finally add the namespace of your
real entity classes.

3) If you have done everything right, your code will compile and the methods of
your WebService will return the real objects instead of the skeletons.

Have fun ;-)

    Peter

This is by design.
However, in ASP.NET 2.0 you are able to create a SchemaImporterExtension.
These are not simple to write but they do allow you to generate the code you
want.

http://msdn2.microsoft.com/en-US/library/w46ccb0h.aspx