both configurations have the account set direction as the domain administrator ..
the error on Web services Exception Console is "Access to the operation has been denied".
at Microsoft.Dynamics.Common.SecurityManager.AssertPermission(Context context, String operation)
at Microsoft.Dynamics.Common.Context.Validate(ValidationResult validationResult, Context context)
at Microsoft.Dynamics.Common.BusinessService.GetList[DetailType,SummaryType](Criteria criteria, Context context)