Wcf Basic authentication

Having some trouble using basic authentication with a simple test Wcf service. I am getting an exception:

The requested service, 'http://qld-tgower/test/Service.svc' could not be activated. See the > server's diagnostic trace logs for more information.

And in the trace log it shows:

The authentication schemes configured on the host ('Basic') do not allow those configured on the binding 'BasicHttpBinding' ('Anonymous'). Please ensure that the SecurityMode is set to Transport or TransportCredentialOnly. Additionally, this may be resolved by changing the authentication schemes for this application through the IIS management tool, through the ServiceHost.Authentication.AuthenticationSchemes property, in the application configuration file at the <serviceAuthenticationManager> element, by updating the ClientCredentialType property on the binding, or by adjusting the AuthenticationScheme property on the HttpTransportBindingElement.

But what I don understand it when I us the incorrect username and password it says it IS using basic authentication?

The HTTP request is unauthorized with client authentication scheme 'Basic'. The authentication header received from the server was 'Basic realm="qld-tgower"'.

This is my web.config details

<system.serviceModel>
<services>
  <service name="WcfService"
      behaviorConfiguration="Behavior">
    <endpoint address="http://QLD-TGOWER/test/Service.svc"
              binding="basicHttpBinding"
              bindingConfiguration="httpBinding"
              contract="IService" />
  </service>
</services>
<diagnostics>
  <endToEndTracing activityTracing="false" messageFlowTracing="true" propagateActivity="true"></endToEndTracing>
</diagnostics>
<bindings>
  <basicHttpBinding>
    <binding name="httpBinding">
      <security mode="TransportCredentialOnly">
        <transport  clientCredentialType="Basic" proxyCredentialType="Basic">
        </transport>
      </security>
    </binding>
  </basicHttpBinding>
</bindings>
<behaviors>
  <serviceBehaviors>
    <behavior>
      <!-- To avoid disclosing metadata information, set the value below to false and remove the metadata endpoint above before deployment -->
      <serviceMetadata httpGetEnabled="true"/>
      <!-- To receive exception details in faults for debugging purposes, set the value below to true.  Set to false before deployment to avoid disclosing exception information -->
      <serviceDebug includeExceptionDetailInFaults="true"/>
    </behavior>
  </serviceBehaviors>
</behaviors>
<serviceHostingEnvironment multipleSiteBindingsEnabled="true"/>
</system.serviceModel>

and this is my App.config

<system.serviceModel>
    <diagnostics>
      <endToEndTracing activityTracing="true" />
      <messageLogging logMessagesAtTransportLevel="true" />
    </diagnostics>
    <bindings>
      <basicHttpBinding>
        <binding name="BasicHttpBinding_IService" >
          <security mode="TransportCredentialOnly">

            <transport clientCredentialType="Basic" proxyCredentialType="Basic"></transport>
            <message clientCredentialType="UserName" />
          </security>

        </binding>
      </basicHttpBinding>
    </bindings>
    <client>
      <endpoint address="http://QLD-TGOWER/test/Service.svc" binding="basicHttpBinding"
        bindingConfiguration="BasicHttpBinding_IService" contract="ServiceReference1.IService"
        name="BasicHttpBinding_IService" />
    </client>
</system.serviceModel>

my test application

private static void Main(string[] args)
{
    var proxy = new ServiceClient("BasicHttpBinding_IService");
    var clientCredentials = proxy.ClientCredentials;
    clientCredentials.UserName.UserName = "username";
    clientCredentials.UserName.Password = "password";
    var res = proxy.GetData(1);
    Console.WriteLine(res);
    Console.WriteLine("Done");
    Console.ReadKey(true);
}

And my service

public class Service : IService
{

   public string GetData(int value)
   {
       return string.Format("You entered: {0}", value);
   }
}

Is there something that I am missing here?