This may be a security issue...
I have an IFrame on my page w/ an .ashx src. The handler does something like
context.Response.ContentType = "text/html";
context.Response.Write(@"hello world");
If I navigate to the handler directly in a new browser window I see the "hello world"
If I try to open the handler in the IFrame it fails on IE. The handler is invoked but the response is refused.
It works fine in FireFox.
edit: if I change the IFrame src to be an aspx page it works fine