I worked so hard on this that I thought I might share the final product with everybody.
Start here and download Michele's book's Appendix A, I know you want to start right away, but you need to read the whole chapter before you do. This chapter will help you install the security database and setting up your certificates. After reading that you can go ahead and download the projects I worked on. Here's the web application where the services are hosted and here's the client. Make sure you load them with VS in the same solution (these are for VS2005).
Keep in mind you'll have to change all the endpoint's url.
The web application also has a web service and an aspx page to test your credentials, so when you run the client you'll set up credentials you know are correct. If you can't log in using the aspx page, do not try to run the WCF client... it won't work.