Hi,
 I have developed Web services based on WSE3.0 X.509 Certificate
authentication for client and server. I have tested in VS 2005 both
services and client application working fine with out any issues.

In Client application web reference to VS 2005 Web Services which run
in VS 2005 on some port. Works properly.

I have copied same VS 2005 WSE3.0 Webservices to IIS 5.5 and changed
the ASP.NET version to 2.0. Tested Services in IIS, It is working fine.

In the client application I have changed Web References WebServices
installed in the IIS, Which are developed in VS 2005 with WSE3.0.  It
is failing to process the response.
I have given full permission for Client Certificate and Server
Certificate to everyone in the system.

I am getting following error message, I think some security settings
are missing. Can any one please tell me where I am missing..

Microsoft.Web.Services3.ResponseProcessingException: WSE910: An error
happened during the processing of a response message, and you can find
the error in the inner exception.  You can also find the response
message in the Response property. --->
System.InvalidOperationException: Security requirements are not
satisfied because the security header is not present in the incoming
message.
  at
Microsoft.Web.Services3.Security.SecureConversationClientReceiveSecurityFilter.ValidateMessageSecurity(SoapEnvelope
envelope, Security security)
  at
Microsoft.Web.Services3.Security.ReceiveSecurityFilter.ProcessMessage(SoapEnvelope
envelope)
  at Microsoft.Web.Services3.Pipeline.ProcessInputMessage(SoapEnvelope
envelope)
  at
Microsoft.Web.Services3.Messaging.SoapClient.SendRequestResponse(String
methodname, SoapEnvelope envelope)
  --- End of inner exception stack trace ---
  at
Microsoft.Web.Services3.Messaging.SoapClient.SendRequestResponse(String
methodname, SoapEnvelope envelope)
  at
Microsoft.Web.Services3.Security.SecurityTokenServiceClient.RequestSecurityToken(SecurityTokenMessage
request, String methodName)
  at
Microsoft.Web.Services3.Security.SecurityContextTokenServiceClient.RequestSecurityContextToken(AppliesTo
appliesTo)
  at
Microsoft.Web.Services3.Security.SecurityContextTokenServiceClient.IssueSecurityContextToken(AppliesTo
appliesTo)
  at
Microsoft.Web.Services3.Security.Tokens.SecurityContextTokenManager.RequestTokenFromIssuer(EndpointReference
tokenIssuer, String tokenType, AppliesTo appliesTo, Policy policy,
SoapProtocolVersion soapVersion, StateManager messageState,
StateManager operationState, StateManager sessionState)
  at
Microsoft.Web.Services3.Security.SecureConversationClientSendSecurityFilter.EstablishSecureConversation(SoapEnvelope
envelope)
  at
Microsoft.Web.Services3.Security.SecureConversationClientSendSecurityFilter.SecureMessage(SoapEnvelope
envelope, Security security)
  at
Microsoft.Web.Services3.Security.SendSecurityFilter.ProcessMessage(SoapEnvelope
envelope)
  at
Microsoft.Web.Services3.Pipeline.ProcessOutputMessage(SoapEnvelope
envelope)
  at Microsoft.Web.Services3.Xml.SoapEnvelopeWriter.Finish()
  at Microsoft.Web.Services3.Xml.XmlWrappingWriter.Flush()
  at
System.Web.Services.Protocols.SoapHttpClientProtocol.Serialize(SoapClientMessage
message)
  at
System.Web.Services.Protocols.SoapHttpClientProtocol.Invoke(String
methodName, Object[] parameters)
  at SureshWinClient.SureshServices.ServiceWse.HelloWorld() in
C:\Documents and Settings\SEddala\My Documents\Visual Studio
2005\WebSites\SureshWinClient\Web
References\SureshServices\Reference.cs:line 78
  at SureshWinClient.MainForm.btnExecute_Click(Object sender,
EventArgs e) in C:\Documents and Settings\SEddala\My Documents\Visual
Studio 2005\WebSites\SureshWinClient\MainForm.cs:line 24

Thanks
Suresh