Web Service Cross Domain Error

[Fortinbra]

I'm using a silverlight client to consume a custom web service in ASP.NET (.asmx). When running in IIS on my Local Machine (IIS 7.5, Win 7 Enterprise x64), the web service works fine. Trying to connect to my machine from another, I get a cross domain exception. The web service itself is on a server on the network, not on my local machine. There access policy config file is in place and should allow for all connections.

<?xml version="1.0" encoding="utf-8"?>
<access-policy>
  <cross-domain-access>
    <policy>
      <allow-from http-request-headers="SOAPAction">
        <domain uri="*"/>
      </allow-from>
      <grant-to>
        <resource path="/" include-subpaths="true"/>
      </grant-to>
    </policy>
  </cross-domain-access>
</access-policy>

This file is located on the server in both the wwwroot directory and in the website's root directory.