A few months ago I ran into a problem when creating a Web Service out of an orchestration
and I was scratching my head a bit (as I've done this 50+ times with not 1 problem) but after
fiddling around a bit I finally found the answer:

I was getting the following error while attempting to publish the orchestration as a web service:
"project folder at "http://localhost/MyProjectProxy/" cannot be opened with path "C:\Inetpub\wwwroot\MyProjectProxy\" unable to create Web project 'MyProjectProxy'. The two need to map to the same server location."

Now I finally realized that since Windows Server 2003 comes with WSS (Windows Sharepoint Services) I needed to exclude the particular path '/MyProjectProxy/' in Sharepoint Administration.
 

  1. Goto Windows Sharepoint Services Central Administration
    • Under Virtual Server Configuration click Configure virutal server settings
    • Then click the virtual server you wish to change
    • Under Virtual Server Management click on Define managed paths
    • On this page we can include\exclude what paths to let WSS handle.
    • Add your path '/MyProjectProxy/' to the excluded paths list and click ok
  2. Now rerun the BizTalk 2004 Web Service Publishing Wizard and that will auto-generate your
    .NET project containing the new web service that was just created. Build the project and you are ready to rock and roll.

    3. -B