Ok i now have this sorted, i had two main issues with this, this question actually ended up being my first hurdle.
With wshttpbinding i had to configure a client programatically, creating a wshttpbinding and attaching it to an instance of the service. I also had to pass windows credentials. Once i did this, the caller was authenticated message disappeared.
The next stage of the error was a application/xml error where the expected response didnt match soap 1.2 formatting. This was a strange one because for some reason even though the binding server side was wshttp, it was defaulting to basichttp on deployment. To get around this there is a mapping section in the wcf config editor where you can map protocols to a binding. In this, http is set to basichttp, simply change this to wshttp an you are good to go :)
hope this helps someone because these two errors seem to be everywhere with no answers at all!!