Use that menu item - at the bottom of the dialog coming up there's another button for further options (German VS2010 translates to "Extended", English VS2010 says "Advanced"). In the dialog that comes up now, you can use the button "Add web service reference" in the "Compatibility" section.
Please note that configuration entries may be made to the app.config
file of your DLL. As DLLs don't read the app.config
file, you'll have to copy the settings to the app.config
file of your application as described on SO multiple times.