What happens when you use an Application.cfm that is empty,
except for the following line of code?
<cfapplication name="myWebservice"
applicationtimeout="#createtimespan(1,0,0,0)#"
sessiontimeout="#createtimespan(0,0,20,0)#"
sessionmanagement="yes"
setclientcookies="yes">
(N.B.: Application.cfm with capital letter A)