Returning results/erros from WCF services. Complex type or an exception?

The decision how to tackle this problem depends on the client. If you have to support Silverlight Clients, throwing exceptions is out of the picture because Silverlight Clients using the browser HTTP Stack cannot deal with them. For Silverlight Clients I generally recommend (and use myself) the approach described here .

By design, WCF hides exceptions from the client. It's up to the developer to determine what, if any, information is returned to the client when an exception occurs.

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