Here is a clean failure trace. In it you can see the original url is ...
report/create/area/820/
this is rewritten to...
components/report/create.aspx?areaID=820
The trace shows this match on line 116.
The final url is...
http://localhost:80/components/report/create.aspx?areaID=820&UseUploadModule=Dynamic&_Namespace=CuteWebUI&_UploadID=ctl00_ctl00_ContentPlaceHolderContent_ContentPlaceHolderContentTrip_ReportEditControl_TabContainer_TabPanelMedia_MediasUploadControl_UploadAttachmentsImage_1231324875429_1&_UploadControlID=ctl00$ctl00$ContentPlaceHolderContent$ContentPlaceHolderContentTrip$ReportEditControl$TabContainer$TabPanelMedia$MediasUploadControl$UploadAttachments&ContextValue=!3wEWAWQ5poyVsnBArG6lJ6b7R2A4cKwMqA!2!2&_Addon=upload&_AddonGuid=7d30d6df-3548-4280-9ecf-32276f3ce99b
It then goes on to make a request to that url.
So it looks to me the the url rewriting is working fine to this point.
CT