When working with WCF Web API, you don't use service references but the new HttpClient instead e.g.:
var client = new HttpClient();
var byteArray = Encoding.ASCII.GetBytes(userName + ":" + password);
client.DefaultRequestHeaders.Authorization =
new AuthenticationHeaderValue("Basic", Convert.ToBase64String(byteArray));
var task = client.GetAsync("http://webapi/contact/1");
var contact = task.ContinueWith(
t => {
return t.Result.Content.ReadAsAsync<Contact>();
}).Unwrap().Result;
If you need to use .NET 2.0, you can use the HttpWebRequest (the HttpClient sample relies on .NET 4.0 as it is part of WCF Web API):
Uri myUri = new Uri("http://webapi/contact/1");
WebRequest myWebRequest = HttpWebRequest.Create(myUri);
HttpWebRequest myHttpWebRequest = (HttpWebRequest)myWebRequest;
NetworkCredential myNetworkCredential =
new NetworkCredential(username, password);
CredentialCache myCredentialCache = new CredentialCache();
myCredentialCache.Add(myUri, "Basic", myNetworkCredential);
myHttpWebRequest.PreAuthenticate = true;
myHttpWebRequest.Credentials = myCredentialCache;
WebResponse myWebResponse = myWebRequest.GetResponse();
Stream responseStream = myWebResponse.GetResponseStream();