Sorry Eric there is nothing wrong with the deployment, you missed all my posted here, if you please look at my first post or my second?
Also that link is missing the header assembly reference, that you need to get this to work.
<%@ Register Namespace="CuteWebUI" Assembly="CuteWebUI.AjaxUploader" TagPrefix="CuteWebUI" %>
I wasted 3 days to get this to work (time is money i never get back), i have now programmed my own solution that works with my own inherit assembly and asp.net 4.0 and IIS7. Until new version of Ajax Uploader comes.
Unless you are using application pool Classic .NET mode, that support <httpModules></httpModules> and <Modules> you can only use <Modules> with Integrated mode. That is currently not working with current AjaxUploader. (at least not bugg free in integrated mode)
Sorry i can not spend more time on this issue, i hope you understand my point of view as a developer . I tried to explain the issue to help out best i cud.