IIS 7.5 Client Certificate

I have been tasked to setup client certificate authentication for ASMX web services i am hosting on Windows 2008 R2 server with IIS 7.5 and web services are ASMX built on ASP.NET 4.0 with C#. Web services are hosted as a virtual directory under main website.

I am not able to figure out the error. Here is what i have done so far

Setting up One to One Mapping using this tutorial - http://www.iis.net/learn/manage/configuring-security/configuring-one-to-one-client-certificate-mappings

- Created Base 64 .cer file from PFX

- Installed CER file as certificate in Personal Store in Local Computer certificate store

- Setup system.webServer/security/authentication/iisClientCertificateMappingAuthentication under main website as below

          enabled = False

          logonMethod = ClearText

          manyToOneCertificateMappingsEnabled = False

          manyToOneMappings = Count = 0

          oneToOneCertificateMappingsEnabled = True

          oneToOneMappings = Count = 1

                   enabled = 1

                   certificate = .cer file in one line excluding BEGIN and END certificate request lines

                   username = domain admin in formate DOMAIN_NAME\Username

                   Password = password of above user

- Setup system.webServer/security/authentication/iisClientCertificateMappingAuthentication under virtual directory as below

          enabled = True

          logonMethod = ClearText

          manyToOneCertificateMappingsEnabled = False

          manyToOneMappings = Count = 0

          oneToOneCertificateMappingsEnabled = True

          oneToOneMappings = Count = 1

                   enabled = 1

                   certificate = .cer file in one line excluding BEGIN and END certificate request lines

                   username = domain admin in formate DOMAIN_NAME\Username

                   Password = password of above user

- Authentication menthods under main websites and virtual directory both has Anonymous Authentication allowed.

- SSL Settings in virtual directory has Client Certificate Required selected.

No matter what combincation of settings i use, it never authenticates and below is the error i get in Failed Request Trace. Please Help.

RequestAuthType="CertMap"

ModuleName="IISCertificateMappingAuthenticationModule", Notification="AUTHENTICATE_REQUEST", HttpStatus="401", HttpReason="Unauthorized", HttpSubStatus="1", ErrorCode="The parameter is incorrect.
 (0x80070057)", ConfigExceptionInfo=""