One of the former employees with my client dropped by friday, he had been playing around with SOAP in the Linux/mod_perl environment, which have been giving me so many frustrations.
He had a flash-back of what his problems was and a few google searches lates we had a solution. The hits linking to PerlMonks articles.
PerlMonks would probably have been my next step in the way to get some assistance.
So know I have a proposed solution and I will asked the project manager to take care of the political part of getting the Apache servers rebuilt without expat-lite, which seems to be the problem, I need the full expat in order to get the mod_perl based webservices up and running.
I do not not what the response will be to the proposed solution, but at least I know where the problem is.