Chris, there are a number of differences throughout the file... unfortunately, I have no idea what to DO about those differences!!! Here are the ones that jump out as being very different, and not just related to ASP.NET 3.5:
<assemblies>
<add assembly="System.Design, Version=2.0.0.0, Culture=neutral, PublicKeyToken=B03F5F7F11D50A3A" />
<add assembly="System.Windows.Forms, Version=2.0.0.0, Culture=neutral, PublicKeyToken=B77A5C561934E089" />
<add assembly="System.Core, Version=3.5.0.0, Culture=neutral, PublicKeyToken=B77A5C561934E089" />
<add assembly="System.Web.Extensions, Version=3.5.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35" />
<add assembly="System.Xml.Linq, Version=3.5.0.0, Culture=neutral, PublicKeyToken=B77A5C561934E089" />
<add assembly="System.Data.DataSetExtensions, Version=3.5.0.0, Culture=neutral, PublicKeyToken=B77A5C561934E089" />
<add assembly="System.Web.Extensions.Design, Version=3.5.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35" /></assemblies>
<modules>
<remove name="ScriptModule" /><add name="ScriptModule" preCondition="managedHandler" type="System.Web.Handlers.ScriptModule, System.Web.Extensions, Version=3.5.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35" />
</modules>
<handlers>
<remove name="ScriptHandlerFactory" />
<remove name="ScriptHandlerFactoryAppServices" />
<remove name="ScriptResource" /><remove name="WebServiceHandlerFactory-Integrated" />
<add name="WebResource.axd*" path="WebResource.axd*" verb="*" modules="IsapiModule" scriptProcessor="%windir%\Microsoft.NET\Framework\v2.0.50727\aspnet_isapi.dll" resourceType="File" />
<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" />
</handlers>
<system.codedom>
<compilers>
<compiler language="c#;cs;csharp" extension=".cs" type="Microsoft.CSharp.CSharpCodeProvider,System, Version=2.0.0.0, Culture=neutral, PublicKeyToken=b77a5c561934e089" warningLevel="4">
<providerOption name="CompilerVersion" value="v3.5" />
<providerOption name="WarnAsError" value="false" /></compiler></compilers></system.codedom>
<runtime>
<assemblyBinding xmlns="urn:schemas-microsoft-com:asm.v1">
<dependentAssembly>
<assemblyIdentity name="System.Web.Extensions" publicKeyToken="31bf3856ad364e35" />
<bindingRedirect oldVersion="1.0.0.0-1.1.0.0" newVersion="3.5.0.0" /></dependentAssembly>
<dependentAssembly>
<assemblyIdentity name="System.Web.Extensions.Design" publicKeyToken="31bf3856ad364e35" />
<bindingRedirect oldVersion="1.0.0.0-1.1.0.0" newVersion="3.5.0.0" /></dependentAssembly></assemblyBinding></runtime></configuration>
Any advice???