Unable to add Web Reference in Visual Studio 2008 on Win 2003 Serv

C:\Program Files\Microsoft Visual Studio 9.0\VC>wsdl.exe
http://localhost/_vti_b
in/ReportServer/ReportService2006.asmx?WSDL
Microsoft (R) Web Services Description Language Utility
[Microsoft (R) .NET Framework, Version 2.0.50727.1432]
Copyright (C) Microsoft Corporation. All rights reserved.
Error: There was an error processing
'http://localhost/_vti_bin/ReportServer/Rep
ortService2006.asmx?WSDL'.
- The document at the url
http://localhost/_vti_bin/ReportServer/ReportService
2006.asmx?WSDL was not recognized as a known document type.
The error message from each known type may help you fix the problem:
- Report from 'DISCO Document' is 'Root element is missing.'.
- Report from 'WSDL Document' is 'There is an error in XML document (0, 0).'.
- Root element is missing.
- Report from 'XML Schema' is 'Root element is missing.'.

A thread suggests replacing a line in machine.config but unclear where on
earth to shove
<add verb="*" path="*.vsdisco"
type="System.Web.Services.Discovery.DiscoveryRequestHandler,
System.Web.Services, Version=1.0.3300.0, Culture=neutral,
PublicKeyToken=b03f5f7f11d50a3a" validate="false"/>

in there?!!!!

--
Steve G
.