I think your right. How could a large great grand really really trustworthy company like microsoft miss this?
I found this link http://ssysadmin.com/developers/enab...s7-server.html
Windows 2008 \ IIS 7 doesn't have the axd handler mapping set up by default for using Ajax so you need to put the following code into your web.config file if you want to use Ajax and are on one of our Windows 2008 hosting plans.
<add name="Ajax" path="*.axd" verb="*" modules="IsapiModule"
on the internet.