I ran into a pretty weird problem with the Commerce Server 2007 web services and Business User Applications. So much so that I wanted to write a quick note about it. Basically what we were seeing was that the Windows applications couldn't access the web services but we were able to get through to them using the browser. Notably the problem existed both when accessing the service via SSL and without. Further investigation showed that the problem happened on multiple development environments here. Weirdly enough the problem only existed with the Customers and Orders Manager tool the other tools were unaffected even when running with SSL.
Here's the error message which doesn't really tell us anything at all:
A couple of hours of debugging and fiddling around with Fiddler showed that installing the certificate created by SelfSSL.exe fixed the problem but I can't for the life of me explain why that is the case.
The steps I went through to actually install the certificate are as follows:
1) Navigate to the URL of the web service in Internet Explorer 7.
2) Click the red Certificate Error button and from the the View Certificates link.
3) Click the Install Certificate button on the Certificate window.
4) A dialog called Certificate Import Wizard will pop up click Next on the next two screens and finally Finish.
That's it. Hopefully the Business Tools should be able to communicate with the server now.