I used the Web Services Explorer from Eclipse to call the method, in this case if I call either Hello or Goodbye Eclipse will throw the 301 error.
What method? What webservice?
webservice.cgi is not a webservice, you can't call methods an it
you can name it surely-you-cant-be-serious.cgi but it won't respond with "I am serious. And don't call me Shirley"
Let me rephrase. webservice.cgi is not server, it provides no methods for you to call, it prints some xml, and that's it -- it always does this, it never does anything different
Also, WebserviceFunctions.pm contains no code, it is 100% pod
So, whether you use Eclipse or whatever, there is no server for you to call Hello or Goodbye on, it doesn't exist