If the client is running on the . NET Compact Framework 3.5, you can use WCF to invoke the service and use the built-in support for HTTP Digest authentication without requiring SSL.
We ended up disabling the DIGEST authentication for devices running . NET CF. It's not as safe, but we figured the data send and retrieved by the devices running .
NET CF in our case isn't THAT sensitive, so all we really need to do is validate it.
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