Are you seeing this happening in a specific version and specific fix level? Because I tried the same steps on the 10.11 GA as well as the latest and I happen to see that the expected result is really as expected
Probably, you are trying to run the service from Designer as Run in Browser?
With that option, you will not be able to provide the input and hence you won’t see anything in the result.
Also, why do you have the both the input and the output embedded in untitled document references ?
Please name your references explicitly and avoid using the same name, conflicts can arise.
John.
May be you are new to webMethods. Congratulations ! You may use strings as input and output .This will clarify your doubts . Later you may keep those strings inside doc for testing purpose.