Ajax (asp.net ajax) between two different solutions in same development environment

Hello 
I am having problems implementing ajax between two different solutions in my development environment. One project in solution 1 is trying to reference a web service in another project in solution 2.

eg. Project 1 aspx page
<asp:ScriptManager runat="server" ID="scriptManager">
<Services>
<asp:ServiceReference Path="http://localhost:1486/1/0/LookupService.asmx" />
</Services>
</asp:ScriptManager>I am thinking that this is because XMLHTTPRequests can not skip domains, but isn't this the same domain, or does the other port make it so.The problem I am seeing is the JSDEBUG is rendering with errors.Content
<body bgcolor="white">

<span><H1> ...