Request Web Service setup information

I am trying to configure a Web Service using IntelliJ 9.0.1 build IU-93.94 within an existing web application. I could not get it to generate wsdl file.
It does not recognize the java file as already being compiled.

However, I was able to setup a new Web Service Server and Client Program as shown in document/help sections, but I need to integrate web service within an pre-existing web application.

Here are details on what I have checked in the project setup.
Dynamic Web Application runs fine with Tomcat 5.5.27

Project Settings >
Facets > Web > mydynamicweb_project

module settings > modules > myproject (also has WebServices)

module settings > modules > myproject - click on WebServices >
    shows Select WS Engine - choose 'Apache Axis' in dropdown > Apply - displays empty popup with title which shows something similar to below
    'Web Service Engine is not configured'
Tools > WebServices > Enable Web Service Support
    Choose Module:         Module:mydynamic_project_module c:/projects/myproject.iml
    Type:                     Server
    Web Service:        ApacheAxis is compiled and WsdlTest.class exists in output directory
Tools > WebServices > Generate Wsdl from Java Code > shows below Status
"Class WsdlTest was not recompiled after changes, please compile before proceeding"

Here is a sample program to test:

import javax.jws.WebMethod;

public class WsdlTest {

    public String sayHello() {
        System.out.println("In WS function");
        return "Hello, world";

Is there any diagnose information I can check. I have axis jar files configured and also added javaee.jar file to see if this resolves.
I have checked most places where I could be missing any steps, if there are any other things to check/contribute to this question, please let me know and I will be happy to provide details,

Thanks in advance,

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