lines.SerialNumbers.InternalSerialNumber= "test07";
lines.SerialNumbers.Quantity = 1;
lines.SerialNumbers.Add();
lines.SerialNumbers.InternalSerialNumber= "test08";
lines.SerialNumbers.Quantity = 1;
---------- here
lines.SerialNumbers.Add().
I believe u missed Add() function here since u have total total two S/N allocation lines.
Frank