This is actually the expected behavior because integrated mode changed the way modules and handlers are defined in the web.config--as compared to classic mode in IIS7 or IIS6. Integrated mode is the default for IIS7 and currently the default for all new IIS/ASP.NET websites created on The Rackspace Cloud. If your website code was originally written for classic mode or using IIS6, the web.config may need to be updated.
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