It looks to me like it might not even be getting outside of the DS Server...the Axis SOAP engine in WSPack may be complaining about the XML it is trying to interpret.....
...this could be something weird, or it could be as simple as the "mechanics" of implementing the WSTransformer Stage. Be sure that you:
a) import the WSDL via the WSDL meta data importer (table definition import option)...pick one of the operations and it should import cleanly, usually saying that it imported 2 things (request and response) and bringing in a set of table definitions into the repository (it only uses the _IN and _OUT for the formal column information but the others are important meta data placeholders.
b) drop the WSTransformer onto the canvas and put two transformers around it. This is just to be "safe" when first working with the Stage....once you know what you are doing, you won't need them....but other XML "type" Stages can interfere, because they all "overload" the Description attributes on the link.
c) use the Stage level button to get your Web Service (click on the gear icon for the operation you want).
d) ...the most critical for your error.... go to the Input link (and same for output link) and select the "Message" tab first --- load the message info and you should see all the namespace info go into the dialog box.....and your link grid of Columns will automatically be filled. Do nothing else. Now do the same for the Output link.
That should be enough....at least for namespace type problems. Is it possible that you are using a more complex web service? Try a simple one first, one that is one row in and one row out, no SOAP headers required, no SSL or HTTPS or proxies needed, and a simple structure for input and output. One I like to validate with is
http://developerdays.com/cgi-bin/tempco ... pConverter
If you are using SOAP Headers it can get really tricky to get the namespaces right.
Good luck.
Ernie