Goto the COnfiguration tab first, and choose the app tier you want to connect to. IIS-HOsted business services will be installed, active by default on a single-machine installed. Other options show different ways WCF can host services, and interop modes with WebLogic, WebSphere, WSO2, etc. But you must first tell the Smart Client which business service tier you want to connect to, which sets the appropriate URI to the service tier; then you should be able to login, register new users, etc; after you hit the Connect button on the Configuration tab. Initial connection on hitting this button (which verifies the address you enter is correct) may take a few seconds.

-Greg

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Greg Leake, Microsoft

thanks greg