I have same problem.
And when I run Validate I got the following lines in the page Does this affect?
C:\Program Files\Java\jdk1.5.0_16\bin>echo %AXISCLASSPATH%
What you mean by "Does not accomplish anything and you should not keep loose class files in web-inf\lib"?
Unable to find required classes (javax.activation.DataHandler and javax.mail.internet.MimeMultipart). Attachment support is disabled.
Exception: deploy.wsdd (The system cannot find the file specified)