Your service package has Requires authentication checked and the authentication type is Basic. In your connector, you need to select Use authentication and provide an authentication profile with auth type set as Basic. Looks like the service is returning 401 (Unauthorized) as the connector isn't providing Basic credentials in the request. Pega logs may contain details of the error.
2016-06-08 20:57:21,326 [http-bio-8686-exec-9] [ STANDARD] [ ] [ NewWebAP:01.01.01] (nternal.mapping.ParseRuleUtils) ERROR KANDURI|127.0.0.1|SOAP|NewService|WENOGOOD|SampleSoapTest|A4349D968AABDF63DD13B6495BC78E8E5 - Failed to open Rule-Parse-XML record: Wenogo-NewWebAP-Work.Parseintegration.myCreation
The look-up of Parse XML rule referenced on the request tab of your Service SOAP rule is failing. Does the operator whose credentials you mentioned in the authentication profile used by the connector have access to the ruleset in which this Parse XML rule is present?