Has anyone been able to communicate using WCF on Windows Phone Series 7 emulator?

I've been trying for the past two days and it's just happening for me. I can get a normal Silverlight control to work in both Silverlight 3 and Silverlight 4, but not the phone version. Here are two versions that I've tried:

Version 1 - Using Async Pattern

BasicHttpBinding basicHttpBinding = new BasicHttpBinding();
EndpointAddress endpointAddress = new EndpointAddress("http://localhost/wcf/Authentication.svc");
Wcf.IAuthentication auth1 = new ChannelFactory<Wcf.IAuthentication>(basicHttpBinding, endpointAddress).CreateChannel(endpointAddress);

AsyncCallback callback = (result) =>
{

    Action<string> write = (str) =>
    {
        this.Dispatcher.BeginInvoke(delegate
        {
            //Display something
        });
    };

    try
    {
        Wcf.IAuthentication auth = result.AsyncState as Wcf.IAuthentication;
        Wcf.AuthenticationResponse response = auth.EndLogin(result);
        write(response.Success.ToString());
    }
    catch (Exception ex)
    {
        write(ex.Message);
        System.Diagnostics.Debug.WriteLine(ex.Message);
    }
};

auth1.BeginLogin("user0", "test0", callback, auth1);

This version breaks on this line:

Wcf.IAuthentication auth1 = new ChannelFactory<Wcf.IAuthentication>(basicHttpBinding, endpointAddress).CreateChannel(endpointAddress);

Throwing System.NotSupportedException. The exception is not very descriptive and the callstack is equally not very helpful:

   at System.ServiceModel.DiagnosticUtility.ExceptionUtility.BuildMessage(Exception x)
   at System.ServiceModel.DiagnosticUtility.ExceptionUtility.LogException(Exception x)
   at System.ServiceModel.DiagnosticUtility.ExceptionUtility.ThrowHelperError(Exception e)
   at System.ServiceModel.ChannelFactory`1.CreateChannel(EndpointAddress address)
   at WindowsPhoneApplication2.MainPage.DoLogin()
   ....

Version 2 - Blocking WCF call

Here is the version that doesn't use the async pattern.

[System.ServiceModel.ServiceContract]
public interface IAuthentication
{
    [System.ServiceModel.OperationContract]
    AuthenticationResponse Login(string user, string password);
}

public class WcfClientBase<TChannel> : System.ServiceModel.ClientBase<TChannel> where TChannel : class {
        public WcfClientBase(string name, bool streaming)
            : base(GetBinding(streaming), GetEndpoint(name)) {
            ClientCredentials.UserName.UserName = WcfConfig.UserName;
            ClientCredentials.UserName.Password = WcfConfig.Password;
        }
        public WcfClientBase(string name) : this(name, false) {}

        private static System.ServiceModel.Channels.Binding GetBinding(bool streaming) {
            System.ServiceModel.BasicHttpBinding binding = new System.ServiceModel.BasicHttpBinding();
            binding.MaxReceivedMessageSize = 1073741824;
            if(streaming) {
                //binding.TransferMode = System.ServiceModel.TransferMode.Streamed;
            }
            /*if(XXXURLXXX.StartsWith("https")) {
                binding.Security.Mode = BasicHttpSecurityMode.Transport;
                binding.Security.Transport.ClientCredentialType = HttpClientCredentialType.None;
            }*/
            return binding;
        }

        private static System.ServiceModel.EndpointAddress GetEndpoint(string name) {
            return new System.ServiceModel.EndpointAddress(WcfConfig.Endpoint + name + ".svc");
        }

        protected override TChannel CreateChannel()
        {
            throw new System.NotImplementedException();
        }
    }


auth.Login("test0", "password0");

This version crashes in System.ServiceModel.ClientBase<TChannel> constructor. The call stack is a bit different:

   at System.Reflection.MethodInfo.get_ReturnParameter()
   at System.ServiceModel.Description.ServiceReflector.HasNoDisposableParameters(MethodInfo methodInfo)
   at System.ServiceModel.Description.TypeLoader.CreateOperationDescription(ContractDescription contractDescription, MethodInfo methodInfo, MessageDirection direction, ContractReflectionInfo reflectionInfo, ContractDescription declaringContract)
   at System.ServiceModel.Description.TypeLoader.CreateOperationDescriptions(ContractDescription contractDescription, ContractReflectionInfo reflectionInfo, Type contractToGetMethodsFrom, ContractDescription declaringContract, MessageDirection direction)
   at System.ServiceModel.Description.TypeLoader.CreateContractDescription(ServiceContractAttribute contractAttr, Type contractType, Type serviceType, ContractReflectionInfo& reflectionInfo, Object serviceImplementation)
   at System.ServiceModel.Description.TypeLoader.LoadContractDescriptionHelper(Type contractType, Type serviceType, Object serviceImplementation)
   at System.ServiceModel.Description.TypeLoader.LoadContractDescription(Type contractType)
   at System.ServiceModel.ChannelFactory1.CreateDescription()
   at System.ServiceModel.ChannelFactory.InitializeEndpoint(Binding binding, EndpointAddress address)
   at System.ServiceModel.ChannelFactory1..ctor(Binding binding, EndpointAddress remoteAddress)
   at System.ServiceModel.ClientBase1..ctor(Binding binding, EndpointAddress remoteAddress)
   at Wcf.WcfClientBase1..ctor(String name, Boolean streaming)
   at Wcf.WcfClientBase`1..ctor(String name)
   at Wcf.AuthenticationClient..ctor()
   at WindowsPhoneApplication2.MainPage.DoLogin()
   ...

Any ideas?