Compile / Parser Errors with WebConfig and Inherit Code

I am really stuck and looking for some insight and suggestions. I built an ASPX project that works perfectly on my workstation in Dev environment. When I transferred into production, it fails.

In a nutshell, I created an ASPX project that uses the reporting features. We wanted it viewable on the extranet so I published into a folder on the extranet project project. I copied in the compiled code into the Bin folder. Both projects are using namespace so they shouldn't conflict. In IIS, we built a virtual directory so when you go to www.mycompany.com\virtualdirectory it would launch my default.aspx page.

Primary failure: The value for the 'compilerVersion' attribute in the provider options must be 'v4.0' or later if you are compiling for version 4.0 or later of the .NET Framework. To compile this Web application for version 3.5 or earlier of the .NET Framework, remove the 'targetFramework' attribute from the <compilation> element of the Web.config file.

Don't understand the problem because I do not have targetFramework in my web.config. When I add it, my visual studio 2008 does not like it saying it is not declared. Below is the WebConfig minus connection strings:

<?xml version="1.0"?> 
<configuration> 
         
  <configSections> 
                <sectionGroup name="system.web.extensions" type="System.Web.Configuration.SystemWebExtensionsSectionGroup, System.Web.Extensions, Version=3.5.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35"> 
                        <sectionGroup name="scripting" type="System.Web.Configuration.ScriptingSectionGroup, System.Web.Extensions, Version=3.5.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35"> 
                                <section name="scriptResourceHandler" type="System.Web.Configuration.ScriptingScriptResourceHandlerSection, System.Web.Extensions, Version=3.5.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35" requirePermission="false" allowDefinition="MachineToApplication"/> 
                                <sectionGroup name="webServices" type="System.Web.Configuration.ScriptingWebServicesSectionGroup, System.Web.Extensions, Version=3.5.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35"> 
                                        <section name="jsonSerialization" type="System.Web.Configuration.ScriptingJsonSerializationSection, System.Web.Extensions, Version=3.5.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35" requirePermission="false" allowDefinition="Everywhere"/> 
                                        <section name="profileService" type="System.Web.Configuration.ScriptingProfileServiceSection, System.Web.Extensions, Version=3.5.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35" requirePermission="false" allowDefinition="MachineToApplication"/> 
                                        <section name="authenticationService" type="System.Web.Configuration.ScriptingAuthenticationServiceSection, System.Web.Extensions, Version=3.5.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35" requirePermission="false" allowDefinition="MachineToApplication"/> 
                                        <section name="roleService" type="System.Web.Configuration.ScriptingRoleServiceSection, System.Web.Extensions, Version=3.5.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35" requirePermission="false" allowDefinition="MachineToApplication"/> 
        </sectionGroup> 
      </sectionGroup> 
    </sectionGroup> 
  </configSections><appSettings/> 
         
  <connectionStrings></connectionStrings> 
         
  <system.web> 
                 
    &lt!-- 
            Set compilation debug="true" to insert debugging 
            symbols into the compiled page. Because this 
            affects performance, set this value to true only 
            during development. 
 
            Visual Basic options: 
            Set strict="true" to disallow all data type conversions 
            where data loss can occur. 
            Set explicit="true" to force declaration of all variables. 
        --> 
                 
    <customErrors mode="Off"></customErrors> 
     
    <compilation debug="true" strict="false" explicit="true"> 
      <assemblies> 
                                <add assembly="Microsoft.ReportViewer.WebForms, Version=9.0.0.0, Culture=neutral, PublicKeyToken=B03F5F7F11D50A3A"/> 
                                <add assembly="Microsoft.ReportViewer.Common, Version=9.0.0.0, Culture=neutral, PublicKeyToken=B03F5F7F11D50A3A"/> 
                                <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"/></assemblies> 
                        <buildProviders> 
                                <add extension=".rdlc" type="Microsoft.Reporting.RdlBuildProvider, Microsoft.ReportViewer.Common, Version=9.0.0.0, Culture=neutral, PublicKeyToken=b03f5f7f11d50a3a"/> 
                        </buildProviders> 
                </compilation> 
                 
    <pages> 
                        <namespaces> 
                                <clear/> 
                                <add namespace="System"/> 
                                <add namespace="System.Collections"/> 
                                <add namespace="System.Collections.Generic"/> 
                                <add namespace="System.Collections.Specialized"/> 
                                <add namespace="System.Configuration"/> 
                                <add namespace="System.Text"/> 
                                <add namespace="System.Text.RegularExpressions"/> 
                                <add namespace="System.Linq"/> 
                                <add namespace="System.Xml.Linq"/> 
                                <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> 
                        <controls> 
                                <add tagPrefix="asp" namespace="System.Web.UI" assembly="System.Web.Extensions, Version=3.5.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35"/> 
                                <add tagPrefix="asp" namespace="System.Web.UI.WebControls" assembly="System.Web.Extensions, Version=3.5.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35"/> 
      </controls> 
    </pages> 
                 
    &lt!-- 
            The <authentication> section enables configuration 
            of the security authentication mode used by 
            ASP.NET to identify an incoming user. 
        --> 
                 
    <authentication mode="Windows"/> 
                 
    &lt!-- 
            The <customErrors> section enables configuration 
            of what to do if/when an unhandled error occurs 
            during the execution of a request. Specifically, 
            it enables developers to configure html error pages 
            to be displayed in place of a error stack trace. 
 
        <customErrors mode="RemoteOnly" defaultRedirect="GenericErrorPage.htm"> 
            <error statusCode="403" redirect="NoAccess.htm" /> 
            <error statusCode="404" redirect="FileNotFound.htm" /> 
        </customErrors> 
        --> 
     
    <httpHandlers> 
                        <add verb="*" path="Reserved.ReportViewerWebControl.axd" type="Microsoft.Reporting.WebForms.HttpHandler, Microsoft.ReportViewer.WebForms, Version=9.0.0.0, Culture=neutral, PublicKeyToken=b03f5f7f11d50a3a"/> 
                        <remove verb="*" path="*.asmx"/> 
                        <add verb="*" path="*.asmx" validate="false" type="System.Web.Script.Services.ScriptHandlerFactory, System.Web.Extensions, Version=3.5.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35"/> 
                        <add verb="*" path="*_AppService.axd" validate="false" type="System.Web.Script.Services.ScriptHandlerFactory, System.Web.Extensions, Version=3.5.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35"/> 
                        <add verb="GET,HEAD" path="ScriptResource.axd" validate="false" type="System.Web.Handlers.ScriptResourceHandler, System.Web.Extensions, Version=3.5.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35"/> 
    </httpHandlers> 
                <httpModules> 
                        <add name="ScriptModule" type="System.Web.Handlers.ScriptModule, System.Web.Extensions, Version=3.5.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35"/> 
    </httpModules> 
  </system.web> 
   
  <system.codedom> 
                        <compilers> 
                                <compiler language="vb;vbs;visualbasic;vbscript" extension=".vb" type="Microsoft.VisualBasic.VBCodeProvider, System, Version=2.0.0.0, Culture=neutral, PublicKeyToken=b77a5c561934e089" warningLevel="4"> 
                                        <providerOption name="CompilerVersion" value="v3.5"/> 
                                        <providerOption name="OptionInfer" value="true"/> 
                                        <providerOption name="WarnAsError" value="false"/> 
        </compiler> 
      </compilers> 
  </system.codedom> 
         
  &lt!-- 
        The system.webServer section is required for running ASP.NET AJAX under Internet 
        Information Services 7.0.  It is not necessary for previous version of IIS. 
    --> 
         
  <system.webServer> 
                        <validation validateIntegratedModeConfiguration="false"/> 
                <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="WebServiceHandlerFactory-Integrated"/> 
                        <remove name="ScriptHandlerFactory"/> 
                        <remove name="ScriptHandlerFactoryAppServices"/> 
                        <remove name="ScriptResource"/> 
                        <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" verb="GET,HEAD" path="ScriptResource.axd" preCondition="integratedMode" type="System.Web.Handlers.ScriptResourceHandler, System.Web.Extensions, Version=3.5.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35"/> 
      <add name="Reserved-ReportViewerWebControl-axd" path="Reserved.ReportViewerWebControl.axd" verb="*" type="Microsoft.Reporting.WebForms.HttpHandler" resourceType="Unspecified"/> 
    </handlers> 
  </system.webServer> 
 
 
  <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>

I followed some blog suggestions and I added the targetFramework = "4.0" and changed compiler from v3.5 to v4.0 even though VS2008 didn't like it. When I ran the web pages, I no longer get the error above but get a whole new error:

I get a server error, parser error, could not load type AKSMReporting._default and it shows me the top line of the asp page as follows:

<%@ Page Language="vb" AutoEventWireup="false" Codebehind="default.aspx.vb" Inherits="AKSMReporting._default" %>

I tried the following to get past this error without success:
Change CodeBehind to CodeFile
Removed Compilers and Assemblies from WebConfig
Deleted Bin, recreated and reposted to site
tried moving project to different sub-directories due to folder restrictions of ASPX
Rebuilt project with the primary site project so it compiled as one porject instead of two

Been working on this for days trying to get it to work. Any suggestions other than upgrade to VS 2010 would be appreciated.

Douglas