It looks like this problem has been resolved for a while, but for anyone looking:
Pay attention to the link referenced by the error:
Microsoft.Reporting.Microsoft.Reporting.WebForms.HttpHandler
It should just be Microsoft.Reporting.WebForms.HttpHandler - as we both ended up with being suspicious in our web.config but may have something to do with manually creating the handler in IIS and letting IIS write the handler key to the web application .config (now, of course, I cannot play it).
For those moving to IIS7, remember that now the handler mapping is now in <system.webServer> <handlers> , and not <system.web> <httpHandlers> , as it was in earlier versions. IIS7 ignores the old httpHandlers section, but you can check the settings out of habit there and be disappointed that your settings did not take effect.
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