I have two applications that I want to test locally on the same machine. App 1 has a simple WCF service with the folloiwng config entry:
Do you have two applications ?
One which hosts the server endpoint and the other which is the client ? Are both active in IIS (considering the second application is a web app) ?
If you have two projects for those two components in your solution, you can configure VS to start both project at the same time. This way you can put breakpoints on both the client and the server and see if the server really gets called by the client or if the exception happens without the server method being called.