A quick bit of searching found this: http://forums.iis.net/t/1149768.aspx. Are you running a 64bit server? If so, is it possible you are (potentially inadvertently) mixing 32bit and 64bit code in the same application pool?
More information with slightly more detailed steps to resolve the problem found here: http://blogs.msdn.com/webtopics/archive/2010/03/08/troubleshooting-http-500-19-errors-in-iis-7.aspx (search down for error code 0x8007007e)
Error Message:
HTTP Error 500.19 - Internal Server
Error The requested page cannot be
accessed because the related
configuration data for the page is
invalid. Module
DynamicCompressionModule Notification
SendResponse Handler StaticFile
Error Code 0x8007007e Requested URL
http://localhost:80/ Physical Path
C:\inetpub\wwwroot Logon Method
Anonymous Logon User Anonymous
Reason:
Error Code 0x8007007e is:
ERROR_MOD_NOT_FOUND - The specified
module could not be found.
This problem occurs because the
ApplicationHost.config file or the
Web.config file references a module
that is invalid or that does not
exist. To resolve this problem: In the
ApplicationHost.config file or in the
Web.config file, locate the module
reference or the DLL reference that is
invalid, and then fix the reference.
To determine which module reference is
incorrect, enable Failed Request
Tracing, and then reproduce the
problem.
For above specific error (mentioned in
this example),
DynamicCompressionModule module is
causing the trouble. This is because
of the XPress compression scheme
module (suscomp.dll) which gets
installed with WSUS. Since Compression
schemes are defined globally and try
to load in every application Pool, it
will result in this error when 64bit
version of suscomp.dll attempts to
load in an application pool which is
running in 32bit mode.
This module entry looks like:
Hence to get rid of this problem:
Ø Remove/Disable the XPress
compression scheme from the
configuration using the command below:
%windir%\system32\inetsrv\appcmd.exe
set config
-section:system.webServer/httpCompression
/-[name='xpress']
OR
Ø Add an attribute of "precondition=
"64bitness" for this module entry so
that it loads only in 64bit
application pools
Refer this blog for more details on
Preconditions in IIS7
OR
Ø Use a 32bit version of suscomp.dll