Hi Kevin,
Looks like Chad helped you resolve this one via email. I'm posting part of your exchange for the benefit of others who might encounter this thread. Thanks! -- Candace
Chad: The '401' error you are getting is an Authorization error returned in IIS. I think it might be the specific ASMX file. Can you access the ASMX file directly on the server? I think the issue is accessing that.
Kevin: That did it. That site was set up with integrated Windows Authentication. I turned it back to anonymous and it worked fine. This was our demo site that we had locked down. The production site will be an intranet site, so it will not have Windows Authentication.