I am developing an application based on .Net Framework 3.5 sp1 and hosted on windows server 2008(64bit).
While browsing wcf service (.svc) locally every things is ok
Please make sure you've activated WCF components from here.
Or alternate and easy way is, go to control panel -> Turn Windows feature on or off -> and make sure you've all the options ticked as mentioned in below screenshot.
You might need to activate each box and accept in case you get errors when activating all features at once