When you create a policy in an WSE2 enabled client app in Visual Studio using the WSE Settings tool, your policycache.config file will likely be in the root directory of the application development folder because that is the default setting and I know everyone loves to just use those defaults.  Your app.config file will point to

<microsoft.web.services2>
<diagnostics />
<policy>
<cache name=”../../policyCache.config” />
</policy>
</microsoft.web.services2>

So you need to remember when you deploy your application, especially if you are testing and possibly deploying manually, that the policyCache config is not in the bin folder AND that you will probably need to modify that location setting in the app.config based on the final relationship between your exe and that file.

Just a little thing…but it had me scratching my head for a few minutes.

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