I tried to start a unit test today with debugging enabled. The test runner started the tests but failed with various errors. One of them telling me to regsvr32 a COM component. After a little googling I found Gregg M's blog which has some useful information
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I keep seeing this question posted and I anticipate seeing the question pop up more often. The short answer is: There is no .NET 3.5 application layer for the IIS application context configuration tab. You should set the Framework version to .NET 2.0.
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