So I made your request work, but there were several changes i made to your AXL as well as with the header you said you used. The header should be SOAPAction="CUCMB ver=8.5"
 

The AXL i used is as follows:
 
<soapenv:Envelope xmlns:soapenv="http://schemas.xmlsoap.org/soap/envelope/" xmlns:ns="http://www.cisco.com/AXL/API/8.5">
   <soapenv:Header/>
   <soapenv:Body>
        <ns:addDeviceProfile sequence="?">
          <deviceProfile ctiid="?">
            <name>EMProfile70001</name>
            <product>Cisco 7960</product>
            <protocol>SCCP</protocol>
            <class>Device Profile</class>
            <protocolSide>User</protocolSide>
            <userHoldMohAudioSourceId>1</userHoldMohAudioSourceId>
            <mlppIndicationStatus>Off</mlppIndicationStatus>
            <preemption>Default</preemption>
            <lines>
             <lineIdentifier>
                  <directoryNumber>#1014</directoryNumber>
                  <routePartitionName>hudtloff-Speakers</routePartitionName>
                <index>1</index>
                <label>Bobby Gavin Smith</label>
                <asciiLabel>Bobby Gavin Smith</asciiLabel>
                <display>Bobby Gavin Smith 12345</display>
                <ringSetting>Ring</ringSetting>
                <consecutiveRingSetting>Use System Default</consecutiveRingSetting>
                <displayAscii>Bobby Gavin Smith 12345</displayAscii>
                <mwlPolicy>Use System Policy</mwlPolicy>
                <maxNumCalls>2</maxNumCalls>
                <busyTrigger>1</busyTrigger>
                <callInfoDisplay>
                  <callerName>true</callerName>
                  <callerNumber>false</callerNumber>
                  <redirectedNumber>false</redirectedNumber>
                  <dialedNumber>true</dialedNumber>
                </callInfoDisplay>
                <recordingFlag>Call Recording Disabled</recordingFlag>
                <audibleMwi>Default</audibleMwi>
                <partitionUsage>General</partitionUsage>
                <missedCallLogging>true</missedCallLogging>
              </lineIdentifier>
            </lines>
            <phoneTemplateName uuid="?">Standard 7960 SCCP 2 Line</phoneTemplateName>
            <addOnModules>
              <addOnModule>
                <model>7914 14-Button Line Expansion Module</model>
                <index>1</index>
              </addOnModule>
            </addOnModules>
            <singleButtonBarge>Default</singleButtonBarge>
            <joinAcrossLines>Default</joinAcrossLines>
            <ignorePresentationIndicators>false</ignorePresentationIndicators>
            <dndOption>Ringer Off</dndOption>
            <alwaysUsePrimeLine>Default</alwaysUsePrimeLine>
            <alwaysUsePrimeLineForVoiceMessage>Default</alwaysUsePrimeLineForVoiceMessage>
            <softkeyTemplateName uuid="?">Standard User</softkeyTemplateName>
            <callInfoPrivacyStatus>Default</callInfoPrivacyStatus>
          </deviceProfile>
        </ns:addDeviceProfile>
      </soapenv:Body>
    </soapenv:Envelope>
 
 
Every thing in red is something i changed. The biggest things are that one of the required fields is <class>Device Profile</class>. Your request did not have that in there.

The next thing that i changed is in the <lines>. Notice that instead of using <lines><line> </line></lines> i use <lines><lineIdentifier></lineIdentifier></lines>. You had several problems in the line section one being that your first instance of <line> blah blah </line> isnt formed at all correctly. the second instance of <line> blah blah</line> is closer but your missing <index> and <dirn>. Now i am no expert i have yet to have any luck adding any type of line to any type of device using the <lines><line><dirn>  </dirn></line></lines>. The only way i have had success is using <lines><lineIdentifier><directoryNumber>xxxx</directoryNumber><routePartitionName>xxxxx</routePartitionName>. Here is what you had to add lines:

<lines>
<line ctiid="?">
                <ringSetting>Ring</ringSetting>
                <consecutiveRingSetting>Use System Default</consecutiveRingSetting>
                <mwlPolicy>Use System Policy</mwlPolicy>
                <maxNumCalls>2</maxNumCalls>
                <busyTrigger>1</busyTrigger>
                <callInfoDisplay>
                  <callerName>true</callerName>
                  <callerNumber>false</callerNumber>
                  <redirectedNumber>false</redirectedNumber>
                  <dialedNumber>true</dialedNumber>
                </callInfoDisplay>
                <recordingFlag>Call Recording Disabled</recordingFlag>
                <audibleMwi>Default</audibleMwi>
                <partitionUsage>General</partitionUsage>
                <missedCallLogging>true</missedCallLogging>
              </line>
              <line ctiid="?">
                <index>1</index>
                <label>Bobby Gavin Smith</label>
                <asciiLabel>Bobby Gavin Smith</asciiLabel>
                <display>Bobby Gavin Smith 12345</display>
                <ringSetting>Ring</ringSetting>
                <consecutiveRingSetting>Use System Default</consecutiveRingSetting>
                <displayAscii>Bobby Gavin Smith 12345</displayAscii>
                <mwlPolicy>Use System Policy</mwlPolicy>
                <maxNumCalls>2</maxNumCalls>
                <busyTrigger>1</busyTrigger>
                <callInfoDisplay>
                  <callerName>true</callerName>
                  <callerNumber>false</callerNumber>
                  <redirectedNumber>false</redirectedNumber>
                  <dialedNumber>true</dialedNumber>
                </callInfoDisplay>
                <recordingFlag>Call Recording Disabled</recordingFlag>
                <audibleMwi>Default</audibleMwi>
                <partitionUsage>General</partitionUsage>
                <missedCallLogging>true</missedCallLogging>
              </line>
            </lines>

here is the corrected version (obviously you will need to change the directoryNumber and routePartition)
   <lines>
             <lineIdentifier>
                  <directoryNumber>#1014</directoryNumber>
                  <routePartitionName>hudtloff-Speakers</routePartitionName>
                <index>1</index>
                <label>Bobby Gavin Smith</label>
                <asciiLabel>Bobby Gavin Smith</asciiLabel>
                <display>Bobby Gavin Smith 12345</display>
                <ringSetting>Ring</ringSetting>
                <consecutiveRingSetting>Use System Default</consecutiveRingSetting>
                <displayAscii>Bobby Gavin Smith 12345</displayAscii>
                <mwlPolicy>Use System Policy</mwlPolicy>
                <maxNumCalls>2</maxNumCalls>
                <busyTrigger>1</busyTrigger>
                <callInfoDisplay>
                  <callerName>true</callerName>
                  <callerNumber>false</callerNumber>
                  <redirectedNumber>false</redirectedNumber>
                  <dialedNumber>true</dialedNumber>
                </callInfoDisplay>
                <recordingFlag>Call Recording Disabled</recordingFlag>
                <audibleMwi>Default</audibleMwi>
                <partitionUsage>General</partitionUsage>
                <missedCallLogging>true</missedCallLogging>
              </lineIdentifier>
            </lines>
 
Sorry if my response is to long winded. This is my first response to a question and I want to be clear in how i made it work. Its frustrating when someone responds with only corrected code and no explanation. One more thing, I am no expert so if my understanding of any of this is wrong i apologize, i just know how to make this stuff work from time to time.

The schema does list an enumeration of the possible values for <class>, e.g. drill down through the HTML doc version of the schema to the XClass simpleType:
        <xsd:enumeration value="Phone"/>
        <xsd:enumeration value="Gateway"/>
        <xsd:enumeration value="Conference Bridge"/>
        <xsd:enumeration value="Media Termination Point"/>
        <xsd:enumeration value="Route List"/>
        <xsd:enumeration value="Voice Mail"/>
        <xsd:enumeration value="CTI Route Point"/>
        <xsd:enumeration value="Music On Hold"/>
        <xsd:enumeration value="Simulation"/>
        <xsd:enumeration value="Pilot"/>
        <xsd:enumeration value="GateKeeper"/>
        <xsd:enumeration value="Add-on modules"/>
        <xsd:enumeration value="Hidden Phone"/>
        <xsd:enumeration value="Trunk"/>
        <xsd:enumeration value="Tone Announcement Player"/>
        <xsd:enumeration value="Remote Destination Profile"/>
        <xsd:enumeration value="EMCC Base Phone Template"/>
        <xsd:enumeration value="EMCC Base Phone"/>
        <xsd:enumeration value="Remote Destination Profile Template"/>
        <xsd:enumeration value="Gateway Template"/>
        <xsd:enumeration value="UDP Template"/>
        <xsd:enumeration value="Phone Template"/>
        <xsd:enumeration value="Device Profile"/>
        <xsd:enumeration value="Invalid"/>

You can also get a 'live' dump of the <class> list from the UCM database, e.g.:

select name from typeclass

Reading the list from UCM actually has practical implications for the <product> field (select name from typeproduct), as it is possible to install new device types into UCM (with new, unique <product> values), and these of course won't be listed in the AXL schema that shipped with the base UCM.  Note that <product> can also accept xsd:string values in addition to its enum list - this helps work around the challenge of installable product types.

You need to remove:
    <services>
      <service>
    <urlButtonIndex>0</urlButtonIndex>
      </service>
    </services>
That is not formed correctly and I am assuming you dont mean to be adding a service any way. I forgot to mark that on my original post that I remved that.
 
To add a DN with out creating a device you go to Call Routing -> Directory Number -> Add New