Adam. I didn't change the file structure at all and the account has read permission. I tried it 2 ways 1) where the project was the default website (http://localhost/editor.aspx) and also as a virtual directory (http://localhost/project/editor.aspx). Both have the same negative result.

When I View Source of the rendered page I get the path to the cute editor files and it is accurate, so i am confused on why it is unable to load the files. I assume there must be an issue with the handler in combination with the settings I have???

The only other thing I can think of, although I dont think it should have an effect, is that the editor.aspx page is in a frame.

Any other ideas I can test?