General Notes pertaining to REST operations.
1) The REST Service Definition - a BO of type REST. You generally only need 1 attribute here, as all the work is in the setup screens after clicking REST.
There's really no value in creating the normal Query and Edit forms for this as it can only have 1 record in it.
In the basic REST example, you may see something like this:
IF NOT(EXISTS) REST_Yahoo THEN CREATE REST_Yahoo with REST_Yahoo.name='test'
This ensures that this BO gets populated with the 1 record it needs to operate, keeping you from getting the error item #2 below.
The only thing I dislike about this method, esp. in a multi-user, multi-tenant situation, is that EVERY time anyone goes to do a REST function, this gets checked. It can ONLY have 1 record, and after its there, nothing needs to EVER DELETE IT. So I suggest just using the built-in Standard menu to create a new object and make your 1 record manually and then never have to worry about it again.
2) ERROR MSG: Invalid Service Provider in the following rule: xxx OF xxx
This error is generally caused because you forgot to follow step 1 above. Somehow, get a record created in that BO to move past this step.