Palle Technologies discusses two methodologies for creating web service clients: adding a web reference or creating a proxy using WSDL.EXE. The document then explains how WSDL is used to generate a proxy class and call the web services. WSDL describes web services by defining elements like messages, ports, bindings and operations. It uses XML Schema to define data types and has a standard structure with elements for types, messages, portType and binding.