Alex,

Thanks a lot for your reply. However I ran into a problem. I used to have a
solution with two projects: one project for my client win app and another
project for my web service. Since I decided to use SOAP tcp service I
replaced my previous Web project with a normal C# project (similar to WSE
sample).  This in turn led me to one only app.config file (in my client
project).  I double-checked MSDN which confirmed that in such a situation I
can only have one app.config file.  Now the problem: how do I specify my
server-side policy?  I created policy.config for the server project but where
do I reference it?  It used to be in the web.config.  My one and only
app.config includes an entry for the client-side policy.config.  What am I  
supposed to do with the server side policy?

Thanks in advance.
Anna