Vista Tutorial - Wrong client credentials in windows-hosted WCF service called from

I'm testing a WCF service in which my methods return personalized info based
on the identity of the caller.
This works fine, Thread.CurrentPrincipal.Identity.Name and all the other
identity-holders, returns the individual users domain and login.
However when me and my coworker access the web app simultaniously I GET HIS
CREDENTIALS!
For instance, the method below returns his domain\login.

[OperationBehavior(Impersonation = ImpersonationOption.Required)]
public string ServiceTest()
{
return
OperationContext.Current.ServiceSecurityContext.WindowsIdentity.Name;
}

At first I thought this was somehow a cache problem (IIS7 or we've got some
service cache) and I was served an old response, but a timestamp on the
service response quickly disproved that.

I would understand if the method returned the IIS user account or the
account the windows service runs under.. but my coworkers.. That's a total
security breech.
How to solve?