ReportViewer on IIS 7 Windows 2008 not rendering, usual fix not working

I moved from Katmai and Windows 2003, to SQL 2008 RTM and Server 2008 with IIS 7. My ReportViewer based .Net application runs but reportviewer control icons do not display and the report does not render. Same reports render in ReportManager and Visual Studio. I tried this common fix which did not work:

• Open Internet Information Services (IIS) Manager and select your Web application.
• Under IIS area, double-click on Handler Mappings icon.
• At the Action pane on your right, click on Add Managed Handler.
• At the Add Managed Handler dialog, enter the following:
  Request path: Reserved.ReportViewerWebControl.axd
  Type: Microsoft.Reporting.WebForms.HttpHandler
  Name: Reserved-ReportViewerWebControl-axd
• Click OK.

http://forums.msdn.microsoft.com/en/vsreportcontrols/thread/4f75cfdb-805c-47bc-bd2c-07f716ed0e15/


My Web.Config is below. Any insights appreciated.
<?xml version="1.0"?>

<configuration xmlns="http://schemas.microsoft.com/.NetConfiguration/v2.0">
    <connectionStrings/>
   
<system.web>

<!--<compilation debug="false" strict="false" explicit="true">-->
   
 <httpHandlers>
    <add path="Reserved.ReportViewerWebControl.axd" verb="*" type="Microsoft.Reporting.WebForms.HttpHandler, Microsoft.ReportViewer.WebForms, Version=8.0.0.0, Culture=neutral, PublicKeyToken=b03f5f7f11d50a3a"
          validate="false" />
 </httpHandlers>
   
    <customErrors mode="Off"/>
   

<authentication mode="Forms">
<forms name="AuthCookie" timeout="60">
<credentials passwordFormat="Clear">

<user name="foo" password="bar" />

</credentials>
</forms>
</authentication>

    <compilation>
      <buildProviders>
        <add extension=".rdlc" type="Microsoft.Reporting.RdlBuildProvider, Microsoft.ReportViewer.Common, Version=8.0.0.0, Culture=neutral, PublicKeyToken=b03f5f7f11d50a3a" />
      </buildProviders>
    </compilation>
   
   
   
<authorization>
  <deny users="?" />
</authorization>

<sessionState mode="InProc"/>

<pages>
    <namespaces>
        <clear/>
        <add namespace="System"/>
        <add namespace="System.Collections"/>
        <add namespace="System.Collections.Specialized"/>
        <add namespace="System.Configuration"/>
        <add namespace="System.Text"/>
        <add namespace="System.Text.RegularExpressions"/>
        <add namespace="System.Web"/>
        <add namespace="System.Web.Caching"/>
        <add namespace="System.Web.SessionState"/>
        <add namespace="System.Web.Security"/>
        <add namespace="System.Web.Profile"/>
        <add namespace="System.Web.UI"/>
        <add namespace="System.Web.UI.WebControls"/>
        <add namespace="System.Web.UI.WebControls.WebParts"/>
        <add namespace="System.Web.UI.HtmlControls"/>
    </namespaces>
</pages>

  </system.web>

<system.webServer>
<validation validateIntegratedModeConfiguration="false" />
    <handlers>
       <add name="Reserved-ReportViewerWebControl-axd" path="Reserved.ReportViewerWebControl.axd" verb="*" type="Microsoft.Reporting.WebForms.HttpHandler" resourceType="Unspecified" />
    </handlers>
</system.webServer>
   
</configuration>