Removed the previous link, this one explains it a bit better http://learn.iis.net/page.aspx/243/aspnet-integration-with-iis7/.
If you're developing using the local asp.net webdev server, you must remove some of the HttpHandlers and HttpModules and then add them back to the section. This tells IIS7 to run those in integrated mode. This is needed when deploying your app to an IIS 7 server including for MVC. See below as a reference example:
<system.webServer>
<validation validateIntegratedModeConfiguration="false" />
<modules runAllManagedModulesForAllRequests="true">
<remove name="ScriptModule" />
<remove name="UrlRoutingModule" />
<add name="FormsAuthenticationModule" type="System.Web.Security.FormsAuthenticationModule" />
<add name="ScriptModule" preCondition="managedHandler" type="System.Web.Handlers.ScriptModule, System.Web.Extensions, Version=3.5.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35" />
<add name="UrlRoutingModule" type="System.Web.Routing.UrlRoutingModule, System.Web.Routing, Version=3.5.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35" />
</modules>
<handlers>
<remove name="WebServiceHandlerFactory-Integrated" />
<remove name="ScriptHandlerFactory" />
<remove name="ScriptHandlerFactoryAppServices" />
<remove name="ScriptResource" />
<remove name="MvcHttpHandler" />
<remove name="UrlRoutingHandler" />
<add name="ScriptHandlerFactory" verb="*" path="*.asmx" preCondition="integratedMode" type="System.Web.Script.Services.ScriptHandlerFactory, System.Web.Extensions, Version=3.5.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35" />
<add name="ScriptHandlerFactoryAppServices" verb="*" path="*_AppService.axd" preCondition="integratedMode" type="System.Web.Script.Services.ScriptHandlerFactory, System.Web.Extensions, Version=3.5.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35" />
<add name="ScriptResource" preCondition="integratedMode" verb="GET,HEAD" path="ScriptResource.axd" type="System.Web.Handlers.ScriptResourceHandler, System.Web.Extensions, Version=3.5.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35" />
<add name="MvcHttpHandler" preCondition="integratedMode" verb="*" path="*.mvc" type="System.Web.Mvc.MvcHttpHandler, System.Web.Mvc, Version=2.0.0.0, Culture=neutral, PublicKeyToken=31bf3856ad364e35, processorArchitecture=MSIL" />
<add name="UrlRoutingHandler" preCondition="integratedMode" verb="*" path="UrlRouting.axd" type="System.Web.HttpForbiddenHandler, System.Web, Version=2.0.0.0, Culture=neutral, PublicKeyToken=b03f5f7f11d50a3a" />
</handlers>
</system.webServer>
Hope that helps,
Eddy
PS. Old link http://www.asp.net/(S(ywiyuluxr3qb2dfva1z5lgeg))/learn/mvc/tutorial-08-cs.aspx