Custom tool warning: DiscoCodeGenerator unable to initialize code generator. No code generated.

[Paul Liebrand]

I created a brand new WebService (HelloWorld) and when I attempt to add this WebService to a WindowsForm project I get the following error message in my Task Listing

c:\Data\Projects\ConnectionTest\ConnectionTest\Web References\localhost\Reference.map(1): Custom tool warning: DiscoCodeGenerator unable to initialize code generator. No code generated

Whats going on?