When i invoke the callback from the server, its received at the client. At the client end, if I try to assign the string being passed to a variabel it works fine, but instead if i try to assign to a statusbar panel, the client just hangs up!!!. I wanted to know the cause for this peculiar problem.

Thanks in advance

Try Invoke/BeginInvoke on the control. This will marshal the call to the UI thread, on which the control lives.