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hmmm not sure what this error means. Try to run the soapcpp2.exe manually in a command prompt to see what is going on ($(SolutionDir)\gsoap-2.8\gsoap\bin\win32\soapcpp2.exe -S $(InputPath)) probably it will give you some more info about what happend.

second: I just did a retest of this blog with the latest version of gsoap and WEC7 virutal pc SDK but the steps are still valid. Make sure you follow each step carefully.
third: what is your environment? WEC7 wince6/5...

lastly if you still encounter issues pass me your solution an I can take a quick peek what's going wrong...