I ran the Bing Map sample from the SDK Samples. Fails with the same error. Here is the crash dump
Sample: BingImagery
Error: The remote server returned an unexpected response: (417) Expectation failed.
Inner: The remote server returned an unexpected response: (417) Expectation failed.
Stack Trace:
Server stack trace:
at System.Runtime.AsyncResult.End[TAsyncResult](IAsyncResult result)
at System.ServiceModel.Channels.ServiceChannel.SendAsyncResult.End(SendAsyncResult result)
at System.ServiceModel.Channels.ServiceChannel.EndCall(String action, Object[] outs, IAsyncResult result)
at System.ServiceModel.Channels.ServiceChannelProxy.InvokeEndService(IMethodCallMessage methodCall, ProxyOperationRuntime operation)
at System.ServiceModel.Channels.ServiceChannelProxy.Invoke(IMessage message)
Exception rethrown at [0]:
at ESRI.ArcGIS.Client.Layer.OnInitializationFailed(EventArgs e)
at System.Windows.Threading.ExceptionWrapper.InternalRealCall(Delegate callback, Object args, Int32 numArgs)
at MS.Internal.Threading.ExceptionFilterHelper.TryCatchWhen(Object source, Delegate method, Object args, Int32 numArgs, Delegate catchHandler)
Hope this provides some help to diagnosing the problem
Nigel