The HTTP request is unauthorized with client authentication scheme ‘Ntlm’ The authentication header received from the server was ‘NTLM’

Visual Studio 2005

1. Create a new console application project in Visual Studio
2. Add a “Web Reference” to the Lists.asmx web service.
   • Your URL will probably look like: http://servername/sites/SiteCollection/SubSite/_vti_bin/Lists.asmx
   • I named my web reference: ListsWebService
3. Write the code in program.cs (I have an Issues list here)

Here is the code.

using System;
using System.Collections.Generic;
using System.Text;
using System.Xml;

namespace WebServicesConsoleApp
{
    class Program
    {
        static void Main(string[] args)
        {
            try
            {
                ListsWebService.Lists listsWebSvc = new WebServicesConsoleApp.ListsWebService.Lists();
                listsWebSvc.Credentials = System.Net.CredentialCache.DefaultNetworkCredentials;
                listsWebSvc.Url = "http://servername/sites/SiteCollection/SubSite/_vti_bin/Lists.asmx";
                XmlNode node = listsWebSvc.GetList("Issues");
            }
            catch (Exception ex)
            {
                Console.WriteLine(ex.ToString());
            }
        }
    }
}

---

Visual Studio 2008

1. Create a new console application project in Visual Studio
2. Right click on References and Add Service Reference
3. Put in the URL to the Lists.asmx service on your server
   • Ex: http://servername/sites/SiteCollection/SubSite/_vti_bin/Lists.asmx
4. Click Go
5. Click OK
6. Make the following code changes:

Change your app.config file from:

<security mode="None">
    <transport clientCredentialType="None" proxyCredentialType="None"
        realm="" />
    <message clientCredentialType="UserName" algorithmSuite="Default" />
</security>

To:

<security mode="TransportCredentialOnly">
  <transport clientCredentialType="Ntlm"/>
</security>

Change your program.cs file and add the following code to your Main function:

ListsSoapClient client = new ListsSoapClient();
client.ClientCredentials.Windows.ClientCredential = System.Net.CredentialCache.DefaultNetworkCredentials;
client.ClientCredentials.Windows.AllowedImpersonationLevel = System.Security.Principal.TokenImpersonationLevel.Impersonation;
XmlElement listCollection = client.GetListCollection();

Add the using statements:

using [your app name].ServiceReference1;
using System.Xml;

Reference: http://sharepointmagazine.net/technical/development/writing-caml-queries-for-retrieving-list-items-from-a-sharepoint-list