Although I like the ease of deploying this type of HTTP handler (and the fact that you do not need to deploy the web.config entry for the handler), in cases where you cannot use the _layouts directory OR you want to have a custom file extension, an alternative method is also used here (although IIS requires one manual configuration step, so it may not be suitable for "Without touch deployment")
1) Create your http handler, as usual for an asp.net application. You can add links to SharePoint DLLs and interact with the object model since you are in the application pool.
2) Add and go into your web.config to register the handler and determine the extension that you are going to use. IE:
3) Define your custom extension in IIS using IIS> SIte website properties> Home directory> Configuration> Mappings
In this case, we defined the .proxy extension that the handler will process. Our handler is a .NET assembly, so we need to add a mapping to route .proxy requests to .net isapi dll (C: \ WINDOWS \ Microsoft.NET \ Framework \ v2.0.50727 \ aspnet_isapi.dll) .. also make make sure you clean "
From comments on http://msdn.microsoft.com/en-us/library/bb457204.aspx
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