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The service reference is the newer interface for adding references to all manner of WCF services (they may not be web services) whereas Web reference is specifically concerned with ASMX web references. You can access web references via the advanced options in add service reference (if I recall correctly).
The WCF Web Service Reference tool retrieves metadata from a web service in the current solution, on a network location, or from a WSDL file, and generates a source file containing Windows Communication Foundation (WCF) client proxy code that your . NET app can use to access the web service.
For . NET Framework projects, service reference enables a project to access one or more WCF Data Services. Use the Add Service Reference dialog box to search for WCF Data Services in the current solution, locally, on a local area network, or on the Internet. For .
To add a Web Reference You can also open the Add Web Reference dialog box in the Solution Explorer pane by right-clicking References and selecting Add Web Reference. In the Web reference name box, rename the Web reference toExcelWebService. Click Add Reference to add a Web reference for the target Web service.
Add Web Reference is the old-style, deprecated ASP.NET webservices (ASMX) technology (using only the XmlSerializer for your stuff) - if you do this, you get an ASMX client for an ASMX web service. You can do this in just about any project (Web App, Web Site, Console App, Winforms - you name it).
Add Service Reference is the new way of doing it, adding a WCF service reference, which gives you a much more advanced, much more flexible service model than just plain old ASMX stuff.
Since you're not ready to move to WCF, you can also still add the old-style web reference, if you really must: when you do a "Add Service Reference", on the dialog that comes up, click on the [Advanced] button in the button left corner:
and on the next dialog that comes up, pick the [Add Web Reference] button at the bottom.
If I understand your question right:
To add a .net 2.0 Web Service Reference instead of a WCF Service Reference, right-click on your project and click 'Add Service Reference.'
Then click "Advanced.." at the bottom left of the dialog.
Then click "Add Web Reference.." on the bottom left of the next dialog.
Now you can add a regular SOAP web reference like you are looking for.
Adding a service reference allows you to create a WCF client, which can be used to talk to a regular web service provided you use the appropriate binding. Adding a web reference will allow you to create only a web service (i.e., SOAP) reference.
If you are absolutely certain you are not ready for WCF (really don't know why) then you should create a regular web service reference.
In the end, both do the same thing. There are some differences in code: Web Services doesn't add a Root namespace of project, but Service Reference adds service classes to the namespace of the project. The ServiceSoapClient class gets a different naming, which is not important. In working with TFS I'd rather use Service Reference because it works better with source control. Both work with SOAP protocols.
I find it better to use the Service Reference because it is new and will thus be better maintained.
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