I think the error that you are seeing is because there is a missing HttpHandler entry in the web.config. Make sure you have a entry for the ReportViewer HttpHandler in the <system.webServer> section of the web.config, this section is specifc to IIS7. I beliieve the entry should look something like this:
<system.webServer>
<handlers>
<add name="ReportViewerWebControlHandler" verb="*" path="Reserved.ReportViewerWebControl.axd" preCondition="integratedMode" type="Microsoft.Reporting.WebForms.HttpHandler, Microsoft.ReportViewer.WebForms, Version=9.0.0.0, Culture=neutral, PublicKeyToken=b03f5f7f11d50a3a"/>
</handlers>
</system.webServer>
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