WCF ChannelFactory causes fault in Net 3.5.

I am currently testing the latest version of Typemock and am running into a problem with WCF ChannelFactory.
The .Net 3.5 C# test project is running under Visual Studio 2008 and does not use Typemock, there are no references to any of the dll's.
When Typemock is enabled in the IDE all of the tests cause the ChannelFactory to fault when it tries to open the connection.
When I disable Typemock all of the tests pass.

As a test I moved one of the faulting tests to VisualStudio 2010 and .Net 4.0.
The test passes when Typemock is enabled.
However, moving the project to .Net 4.0 is not currently an option.

I tried to attach the Typemock logs of the test run but the compressed file was too big.
I have them if you want to see them, just let me know.

Thanks in advance.

This is the stack trace of the fault in the WCF Service Log:

at System.Environment.GetStackTrace(Exception e, Boolean needFileInfo)
at System.Environment.get_StackTrace()
at TypeMock.Interceptors.EnvironmentInterceptor.get_StackTrace()
at System.Diagnostics.TraceEventCache.get_Callstack()
at System.Diagnostics.XmlWriterTraceListener.WriteFooter(TraceEventCache eventCache)
at System.Diagnostics.XmlWriterTraceListener.TraceData(TraceEventCache eventCache, String source, TraceEventType eventType, Int32 id, Object data)
at System.Diagnostics.TraceSource.TraceData(TraceEventType eventType, Int32 id, Object data)
at System.ServiceModel.Diagnostics.DiagnosticTrace.TraceEvent(TraceEventType type, TraceCode code, String description, TraceRecord trace, Exception exception, Object source)
at System.ServiceModel.Channels.CommunicationObject.Open(TimeSpan timeout)
at System.ServiceModel.Channels.ServiceChannelFactory.TypedServiceChannelFactory`1.OnOpen(TimeSpan timeout)
at System.ServiceModel.Channels.CommunicationObject.Open(TimeSpan timeout)
at System.ServiceModel.ChannelFactory.OnOpen(TimeSpan timeout)
at System.ServiceModel.Channels.CommunicationObject.Open(TimeSpan timeout)
at System.ServiceModel.Channels.CommunicationObject.Open()
at OfficialCommunity.PaymentProcessing.ChannelManager.GetTransactionProcessor() in D:ProjectsPlatformTrunkPaymentProcessingPaymentProcessingChannelManager.cs:line 82
at OfficialCommunity.PaymentProcessing.ChannelManager.get_CurrentChannel() in D:ProjectsPlatformTrunkPaymentProcessingPaymentProcessingChannelManager.cs:line 45
at OfficialCommunity.PaymentProcessing.PaymentRequest.SendRequest(TransactionType transactionType) in D:ProjectsPlatformTrunkPaymentProcessingPaymentProcessingPaymentRequest.cs:line 91
at OfficialCommunity.PaymentProcessing.CreditCardCheckEnrollmentRequest.GetResponse() in D:ProjectsPlatformTrunkPaymentProcessingPaymentProcessingCreditCardCreditCardCheckEnrollmentRequest.cs:line 40
at OfficialCommunity.PaymentProcessing.Tests.CreditCardAuthorizationRequestTest.Maestro_CheckAuthorization_SucessfulAuthentication() in D:ProjectsPlatformTrunkPaymentProcessingPaymentProcessing.TestsCreditCardAuthorizationRequestTest.cs:line 196
at System.RuntimeMethodHandle._InvokeMethodFast(Object target, Object[] arguments, SignatureStruct& sig, MethodAttributes methodAttributes, RuntimeTypeHandle typeOwner)
at System.RuntimeMethodHandle.InvokeMethodFast(Object target, Object[] arguments, Signature sig, MethodAttributes methodAttributes, RuntimeTypeHandle typeOwner)
at System.Reflection.RuntimeMethodInfo.Invoke(Object obj, BindingFlags invokeAttr, Binder binder, Object[] parameters, CultureInfo culture, Boolean skipVisibilityChecks)
at System.Reflection.RuntimeMethodInfo.Invoke(Object obj, BindingFlags invokeAttr, Binder binder, Object[] parameters, CultureInfo culture)
at System.Reflection.MethodBase.Invoke(Object obj, Object[] parameters)
at Microsoft.VisualStudio.TestTools.TestTypes.Unit.UnitTestExecuter.RunTestMethod()
at Microsoft.VisualStudio.TestTools.TestTypes.Unit.UnitTestExecuter.ExecuteTest(Boolean isLoadTest)
at Microsoft.VisualStudio.TestTools.TestTypes.Unit.UnitTestExecuter.Execute(UnitTestResult result, Boolean isLoadTest)
at Microsoft.VisualStudio.TestTools.TestTypes.Unit.UnitTestRunner.ExecuteSingleTest(UnitTestExecuter executer, UnitTestResult result, UnitTestElement test, ITestContext testContext, UnitTestAdapterContext userContext, Boolean isLoadTest)
at Microsoft.VisualStudio.TestTools.TestTypes.Unit.UnitTestRunner.ExecuteSingleTest(UnitTestExecuter executer, UnitTestElement test, ITestContext testContext, UnitTestAdapterContext userContext, Boolean isLoadTest)
at Microsoft.VisualStudio.TestTools.TestTypes.Unit.UnitTestRunner.Run(UnitTestElement test, ITestContext testContext, Boolean isLoadTest)