Problems with Visual studio 2012 and Silverlight 5.0

I have a WCF service that I was using with a 2010 project, and Silverlight 4 successfully.  The same WCF service is also used with a WPF project.

I started a new project using VS2012 and Silverlight 5.0 and it does connect correctly and gives errors.

I tested and was able to connect using VS2012 and a WCF project inside of this project, that is .net Framework 4.5

I changed the new project to use Silverlight 4.0 and it connects correctly.

Any ideas what the problem might be?