We started testing the migration of one of our main websites from CF9 to CF10 and everything seemed to be going well.  When we started testing our web services though things got a little weird.  All of our web services were throwing error messages.  Both installations co-exist on the same Windows 2008 R2 server running inside of the same instance of IIS.

wsVersion = 1

AXIS error
Sorry, something seems to have gone wrong... here are the details:
Fault - Error attempting to create Java skeleton for CFC web service.; nested exception is: coldfusion.xml.rpc.CFCInvocationException: [java.lang.NullPointerException : null]
 AxisFault 
faultCode: {http://schemas.xmlsoap.org/soap/envelope/}Server.generalException 
faultSubcode: 
faultString: Error attempting to create Java skeleton for CFC web service.; nested exception is: coldfusion.xml.rpc.CFCInvocationException: [java.lang.NullPointerException : null] 
faultActor: 
faultNode: 
faultDetail: {http://xml.apache.org/axis/}hostname:Dev

wsVersion = 2

HTTP Status 500 - The web service operation caused an invocation exception.
type Status report
messageThe web service operation caused an invocation exception.
descriptionThe server encountered an internal error (The web service operation caused an invocation exception.) that prevented it from fulfilling this request.
Apache Tomcat/7.0.23

Long story short of the hours I spent debugging I discovered that if the web service files were located within an IIS virtual folder this happens.  If I move them to the root of the website or a folder inside of the website they begin to work again.  This behavior is inconsistent with CF8 & CF9 as our websites in development and production under those are running their web services from an IIS virtual folder.

Anyone have an explanation, fix, or work around relating to this?