I have a web service which is returning data to the desktop application. The problem I am having is, when the web service returns small volume of data everything works fine but
It could be because the size of the message is greater than the default message size. You might try increasing the this value in the configuration of the endpoint. You could also take a look at this post.
UPDATE:
To further diagnose the problem I would suggest you activating the trace on the service by putting the following in the config file:
This will generate the WcfDetailTrace.e2e
trace file which you could open with the Service Trace Viewer Tool which will provide you with extensive information about the call and the error message.