I have an issue that seems to be identical to this question. I am unable to add a service reference to any project in Visual Studio. I went so far as to format the entire computer, re-install Windows (Windows 7 Ultimate), and VS2010 Professional. Twice. This is a work computer that I inherited and I find it odd that, even after formatting the drive and reinstalling everything, I cannot add a service reference to any project on this computer.
I am 100% certain that .NET 3.5 is being targeted in my project's settings and even created an empty project to try it out. Same results. I am not sure what I am missing. I am pulling the original solution from TFS (nobody else has this problem) so it's not like I'm missing something in the solution.
Any thoughts?
Edit:
I just created another account (Admin as well) and I can add service references to projects under that account. Am I missing something? My original account has an apostrophe in it--would that mess things up?
Edit 2:
While this has been fixed, I am not happy with the fix-action. I will be opening up a bug with Microsoft later, but I am curious to understand what caused this in the first place and how to avoid it in the future.
Edit 3:
I opened a bug report with Microsoft (here).