The SOAP message you posted for step 8 is not a valid SOAP message (it contains two <soap:body> elements for example), but it isn't even a well-formed XML document! I've pasted the message below with some formatting added to it. As you can see, a lot of elements are never closed, some elements declarations are missing the closing ">" and some bits look a bit like a weird combination of element and attribute.
<soap:envelope
        xmlns:xsd="http://www.w3.org/2001/XMLSchema" 
        xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" 
        xmlns:soap="http://schemas.xmlsoap.org/soap/envelope/" 
        xmlns:tns="http://www.example.com/">
    <soap:body>
        <tns:sendtoarchiveresponse>
            <application>
                <applicationnumber>100044</applicationnumber>
                <accountnumber>0</accountnumber>
                <applicationstatus>
                    <applicationpriority>false</applicationpriority>
                    <channelinitiatedfrom>
                        <title>
                            <title_helper_enabled>true</title_helper_enabled>
                                <gender>
                                    <stateofresidence>
                                        <maritalstatus>
                                            <noofdependants>0</noofdependants>
                                            <sameasresidential>false</sameasresidential>
                                            <residentialstatus>Owner]]></residentialstatus>
                                            <yearsataddress>0</yearsataddress>
                                            <monthsataddress>0</monthsataddress>
                                            <yearsatpreviousaddress>0</yearsatpreviousaddress>
                                            <monthsatpreviousaddress>0</monthsatpreviousaddress>
                                            <containnotes>false</containnotes>
                                            <documentationlanguage>
                                                <highestqualification>OrLower]]></highestqualification>
                                                <covertype>HolderCoverOnly]]></covertype>
                                                <employmenttype>Time]]></employmenttype>
                                                <debitorderaccounttype>
                                                    <debitordertransactionday>1</debitordertransactionday>
                                                    <applicationexpensecommitmentsbondrent>0.0</applicationexpensecommitmentsbondrent>
                                                    <applicationexpensecommitmentscar>0.0</applicationexpensecommitmentscar>
                                                    <applicationexpensecommitmentsclothing1>0.0< applicationexpensecommitmentsclothing1>
                                                    <applicationexpensecommitmentsclothing2>0.0<="" applicationexpensecommitmentsclothing2>
                                                    <applicationexpensecommitmentsclothing3>0.0<="" applicationexpensecommitmentsclothing3>
                                                    <applicationexpensecommitmentsfurniture1>0.0<="" applicationexpensecommitmentsfurniture1>
                                                    <applicationexpensecommitmentsfurniture2>0.0<="" applicationexpensecommitmentsfurniture2>
                                                    <applicationexpensecommitmentscellphone="">0.0</applicationexpensecommitmentscellphone>
                                                    <applicationexpenseothertax>0.0</applicationexpenseothertax>
                                                    <applicationexpenseothermedicalaid>0.0</applicationexpenseothermedicalaid>
                                                    <applicationexpenseotherpension>0.0</applicationexpenseotherpension>
                                                    <applicationexpenseotherschoolfees>0.0</applicationexpenseotherschoolfees>
                                                    <applicationexpenseotherfood>0.0</applicationexpenseotherfood>
                                                    <applicationexpenseothertravelling>0.0</applicationexpenseothertravelling>
                                                    <applicationexpenseotherelectricty>0.0</applicationexpenseotherelectricty>
                                                    <applicationexpenseotherwaterrates>0.0</applicationexpenseotherwaterrates>
                                                    <applicationdisposableincome>0.0</applicationdisposableincome>
                                                    <creditlimit>0</creditlimit>
                                                    <maxcreditlimit>0</maxcreditlimit>
                                                    <diaryactive>false</diaryactive>
                                                    <crosscheckdone>false</crosscheckdone>
                                                    <bureauscoredone>false</bureauscoredone>
                                                    <affordabilitycheckdone>false</affordabilitycheckdone>
                                                    <preagreementsigneddone>false</preagreementsigneddone>
                                                    <cdmcode>0</cdmcode>
                                                    <firstvouchernumber>0</firstvouchernumber>
                                                    <application_fax>
                                                        <fax>
                                                            <name>FormImages\431$FaxedApp09122010013856.jpeg]]></name>
                                                            <deleteafterdownload>false</deleteafterdownload>
                                                            <contents>
                                                                <soap:envelope
                                                                        xmlns:xsd="http://www.w3.org/2001/XMLSchema" 
                                                                        xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance"
                                                                        xmlns:soap="http://schemas.xmlsoap.org/soap/envelope/">
                                                                    <soap:body>
                                                                        <soap:fault>
                                                                            <faultcode>Server</faultcode>
                                                                            <faultstring>Internal server error</faultstring>
                                                                        </soap:fault>
                                                                    </soap:body>
                                                                </soap:envelope>
Ok, so:
app 1 (5009) calls app 2 (5010, which then builds a request to send whatever to app1 (5009). App2 then receives a really long message (step 8 in your answer), which has seems to be ok BUT ends with a soapfault?
If app2 calls app1, should we also see some tracelogging from app1 that it received a request and is then responding to it? What happened before steps 1 and 2 for app1?
It kind of looks like you've built a really complicated flow of calls and it's pretty hard to see what's going on. I'd suggest breaking up all the steps and trying to run them one at a time, and then pinpoint exactly where it breaks. This'll be easier for yourself to debug and for us to help you :)