How to use web.config, asmx and default.aspx

I am having a problem getting my DEFAULT.ASPX file to get the connection in the WEB.CONFIG file, which is calling on a webservice asmx located on a website server. Below are my settings in the web.config file and the default.aspx file.

Notes:
1. I hand coded these files, so there are no other files in play.
2. When I use Visual Studio 2005, there are lots of other files. However, when I copy the files to my website server, I encounter other issues. I cannot use the 'publish' feature in VS2005. I am just trying to run a test to see how the ASMX file works. In this case, the ASMX file is returning a dataset, which the default.aspx file will display to the user.

Questions:
1. What am I doing wrong?
2. Does the asmx file, or something else need to be compiled before I upload it to my server?
3. Where is the location of the web.config file? Can it be in the sub-folder where default.aspx is or does it need to be in the website root folder?

[web.config]
<configuration>
<appSettings>
<add key="ABC.Test" value="http://www.mywebsitee.com//WebServices/Test.asmx"/>
</appSettings>

[default.aspx]
Sub gv_Clients_Load()
    Dim ws As New ABC.Test      <---- Error here, see msg below
    gv_Clients.DataSource = ws.GetClients
    gv_Clients.DataBind()
End Sub

[default.aspx      Error Message]
Compiler Error Message: BC30002: Type 'ABC.Test' is not defined.