Ok, so I have a webservice which uses WSE2 and a custom UsernameTokenManager.

I make a call to the webservice through a windows form client and add the
Username Token to the call.

So why does the webservice fail to use my UsernameTokenManager and instead
validates the username & password against the default implementation of the
UsernameTokenManager?

I know the 'ApplicationUsernameTokenManager' is being loaded correctly
because if change the name the call to the webservice fails and reports that
it cannot find the class.

code:
namespace WebService1
{
    public class ApplicationUsernameTokenManager : UsernameTokenManager
    {
        protected override string AuthenticateToken(UsernameToken token)
        { return token.Username; }
    }
}

web.config:
 <microsoft.web.services2>
   .....
   <security>
     <securityTokenManager
type="WebService1.ApplicationUsernameTokenManager, WebService1"
xmlns:wsse="http://schemas.xmlsoap.org/ws/2003/06/secext"
qname="wsse:UsernameToken" />
   </security>
 </microsoft.web.services2