WCF security binding issue
If you set your service as EncryptAndSign, it must use secured transportation, for example HTTPS. I don't know in your last screenshot if you viewed the service through HTTP or HTTPS, but you have to use HTTPS.
If you wanted IIS to take care if the secured binding, you can just set the security mode to TransportWithCredentialOnly, and configured your web role to use your certificate to bind to 443, which I think you have done already, and then it should be OK.
Alternatively you can use Transport security and in the ServerCredential part you need to specify which certificate you want the WCF to use to create the secured transport.
I've never tried the message security mode but I think it should work, but you may need to specify the certificate as well, under the message security configuration element.