I added an AjaxToolkit:AutoCompleteExtender to my ASP.Net 3.5 application. The web service lives in the same web application. Now I am getting this error when I hit F5/Debug
If the accepted solution doesn't work for you, try installing the VJSharp redistributable package.
32-bit: http://www.microsoft.com/download/en/details.aspx?id=18084
64-bit: http://www.microsoft.com/download/en/confirmation.aspx?id=15468
This got me past the error when none of the other solutions would work.