I remember there were action buttons on the Web Service object allowing you to export & import the WSDL.
The demo showed that you export & edit the WSDL so it's accurate for your server, then import it back.
I remember only too vaguely that there was hand-waving about the authentication types & selection of what was available. And later Daniel Nashed showed how to get this working for oAuth, which wasn't available natively at the time.