Water Remoting SDK template problem

On a related note, if I run the project (the one successfully created in VS, but then opened in Water) I get an error in the console:

~> Process ChatServer started
!> Exception of type System.InvalidOperationException on thread 0EE0
!> Message: Service ChatServer was not found on computer '.'.

And execution stops on this line:

            server.Run(args);

I can hit F5 to continue past the error and it runs fine.