Thank you for this bug report. To properly diagnose the problem, we
need a short but complete example script to be able to reproduce
this bug ourselves. 

A proper reproducing script starts with <?php and ends with ?>,
is max. 10-20 lines long and does not require any external 
resources such as databases, etc. If the script requires a 
database to demonstrate the issue, please make sure it creates 
all necessary tables, stored procedures etc.

Please avoid embedding huge scripts into the report.

The soap server:
<?php 

/** 
 * Testing SOAP Server Extension 
 * 
 * @author dreddy 
 * @package defaultPackage 
 */ 
class QuoteService { 
    private $quotes = array("ibm" => 90, "se"=>20); 
/** 
 * Test Function 
 * 
 * @param string $symbol 
 * @return string 
 */ 
    function getQuote($symbol) 
    { 
        if (isset($this->quotes[$symbol])) 
        { 
            return $this->quotes[$symbol]; 
        } 
        else 
        { 
            throw new SoapFault("Server","Unknow Symbol '$symbol'."); 
        } 
    } 
} 

ini_set("soap.wsdl_cache_enabled", "0"); 
$server = new SoapServer("testsoap.wsdl"); 
$server->setClass("QuoteService"); 
$server->handle(); 
?>

<?xml version='1.0' encoding='UTF-8'?>
<!-- WSDL file generated by Zend Studio. -->
<definitions name="myquote" targetNamespace="urn:myquote" xmlns:typens="urn:myquote" xmlns:xsd="http://www.w3.org/2001/XMLSchema" xmlns:soap="http://schemas.xmlsoap.org/wsdl/soap/" xmlns:soapenc="http://schemas.xmlsoap.org/soap/encoding/" xmlns:wsdl="http://schemas.xmlsoap.org/wsdl/" xmlns="http://schemas.xmlsoap.org/wsdl/">
<message name="getQuote">
<part name="symbol" type="xsd:string"/>
</message>
<message name="getQuoteResponse">
<part name="getQuoteReturn" type="xsd:string"/>
</message>
<portType name="QuoteServicePortType">
<documentation>
Testing SOAP Server Extension
</documentation>

<operation name="getQuote">
<documentation>
Test Function
</documentation>
<input message="typens:getQuote"/>
<output message="typens:getQuoteResponse"/>
</operation>
</portType>
<binding name="QuoteServiceBinding" type="typens:QuoteServicePortType">
<soap:binding style="rpc" transport="http://schemas.xmlsoap.org/soap/http"/>
<operation name="getQuote">
<soap:operation soapAction="urn:QuoteServiceAction"/>
<input>
<soap:body namespace="urn:myquote" use="literal"/>
</input>
<output>
<soap:body namespace="urn:myquote" use="literal"/>
</output>
</operation>
</binding>
<service name="myquoteService">
<port name="QuoteServicePort" binding="typens:QuoteServiceBinding">
<soap:address location="http://weirsz/soap_server.php"/>
</port>
</service>
</definitions>

You probably posted the wrong Envelope in the first message. It works fine.

No it doesn't work, the SOAP envelope to use is as given.  If you testing a PHP-client to a PHP-server it works, but try putting the PHP-server (soap) into SOAP_1_1 mode, and send it the 1.1 compliant envelope as I have provided...it will not work.

If you are testing with a PHP client, you will have to fudge things by overlaying HTTP_RAW_POST_DATA with the 1.1 envelope.

<?php 
$HTTP_RAW_POST_DATA = <<<EOF
<SOAP-ENV:Envelope xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance"
  xmlns:xsd="http://www.w3.org/2001/XMLSchema"
  xmlns:SOAP-ENV="http://schemas.xmlsoap.org/soap/envelope/">
<SOAP-ENV:Body xmlns:ns1="urn:myquote">
<ns1:getQuote>
<symbol>ibm</symbol>
</ns1:getQuote>
</SOAP-ENV:Body>
</SOAP-ENV:Envelope>
EOF;

class QuoteService { 
    private $quotes = array("ibm" => 90, "se"=>20); 
    function getQuote($symbol) 
    { 
        if (isset($this->quotes[$symbol])) { 
            return $this->quotes[$symbol]; 
        } else { 
            throw new SoapFault("Server","Unknow Symbol '$symbol'."); 
        } 
    } 
} 

ini_set("soap.wsdl_cache_enabled", "0"); 
$server = new SoapServer(dirname(__FILE__)."/bug40448.wsdl"); 
$server->setClass("QuoteService"); 
$server->handle(); 
?>

$ sapi/cli/php ../../test/40448/bug40448.php
<?xml version="1.0" encoding="UTF-8"?>
<SOAP-ENV:Envelope xmlns:SOAP-ENV="http://schemas.xmlsoap.org/soap/envelope/" xmlns:ns1="urn:myquote"><SOAP-ENV:Body><ns1:getQuoteResponse><getQuoteReturn>90</getQuoteReturn></ns1:getQuoteResponse></SOAP-ENV:Body></SOAP-ENV:Envelope>

Works fine. If you mean another envelope then please provide it.

You are correct!  I am baffled, but happy to eat my words on this one.

Went back and tried the test case again this AM, and the server no longer kicked an internal server error and processed the request.

I worked with Zend support for a couple weeks on this one and neither one of us could get this to work, as libsoap is not their extension I filed a bug report here.

I will close this bug...with some measure of humility.  Thanks...and I apologize for wasting your time.