I am new to WCF.. is this possible and if its consumed via external web applications is it better go with IIS and http, ie service hosted by an ASP.NET MVC application?
Yes, you can host a WCF service in a windows service.
http://msdn.microsoft.com/en-us/library/ms733069.aspx
I'd say that if you can host it in iis it is probably better.
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