Webservices Problem

Hi,
Can anybody help me?
I am trying to make a crystal report web services.
What I did is-

>opened a Asp.net web sevices Project
>Added a Report1.rpt file to the project,
>simply right-click the report itself in the Project Explorer and from the right-click menu, select Publish as Web Service,
>Build → Build Solution or by hitting F5,
>Running it showing the webservice just fine

>Now creating the client program
>opened an Asp.net project
>Add Web Reference
>Dragging a Crystal Report Viewer into the webform
> on the PageLoad I wrote

CrystalReportViewer1.ReportSource="http://localhost//localhost/test/reportService.asmx”
CrystalReportViewer1.databind()

After this if I run the web form I get an error which says
The request failed with HTTP status 401: Access Denied

The environment runs on localhost.
Anonymous access is allowed.
'integrated windows authentication' is enabled.

I can't understand where I am going wrong.
Plz suggest a way to solve the problem.
Thanks!!
Rudra