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Microsoft CRM Webservices - 401 unauthorized

I am having issues adding new records to the CRM using Microsoft web service. I keep getting the 401 unauthorized. Any idea on how CRM handles priviledges through web services will be useful. Sample error message----------------------------------Unable to Create new RecordSystem.Net.WebException: The request failed with HTTP status 401: Unauthorized. at System.Web.Services.Protocols.SoapHttpClientProtocol.ReadResponse(SoapClientMessage message, WebResponse response, Stream responseStream, Boolean asyncCall) at System.Web.Services.Protocols.SoapHttpClientProtocol.Invoke(String methodName, Object[] parameters) at CRM.Proxy.CrmSdk.CrmService.Create(BusinessEntity entity) at TestCRMConsole.Program.Main(String[] args) in E:\RCICODES\RCIStageCodes\TestCRMConsole\TestCRMConsole\Program.cs:line 42 sample code used-----------------------------------static void Main(string[] args) { CrmAuthenticationToken token = new CrmAuthenticationToken(); token.AuthenticationType = 0; token.OrganizationName = "Together"; CrmService service = new CrmService(); service.Url = "http://rci-lab-crm/mscrmservices/2007/CrmService.asmx"; //service.Credentials = System.Net.CredentialCache.DefaultCredentials; service.CrmAuthenticationTokenValue = token; service.Credentials = new System.Net.NetworkCredential("XXX", "XXXX", "together"); contact SampleContact = new contact(); SampleContact.firstname = "John"; SampleContact.lastname = "Doe"; SampleContact.telephone1 = "561-222-2222"; SampleContact.emailaddress1 = "Email Protected"; try { service.Create(SampleContact); } catch (Exception Ex) { Console.WriteLine("Unable to Create new Record" + Ex); } Console.WriteLine("WAIT"); Console.Read(); }

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