If you have encountered “Error in PortalCrawl Web Service” when the MySite url (e.g sps3://mysite:567/ ) is being crawled then the most likely cause of the error is due to

a) Permission error . Permission needs to be given to the crawl account to the UPA. The permission is “Retrieve People Data for Search Crawlers”

b) The other issue could be MySite Host template is not installed on Root URL. In my scenario it was working for SharePoint 2007 farm, but fails it is not installed on root url for SharePoint Server 2010.