Let me follow-up on this as I'm a bit less confused on this issue but still have a problem.
The SQLXML 3.0 uses virtual folders and an SQLXML ISAPI filter to provide a conduit for URL-based queries to SQL Server. The new SQLXML 4.0 that is part of SQL2005 no longer supports this method. Perhaps for the better but I'm not yet in a possition to migrate all our datafeeds.
In theory I can install SQLXML 3.0 into IIS7 (Win2008 64-bit server), but after what appears to be a successful installation and configure of the virutal folders its not working.
Attempts to call one of the xml templates just gives a 500 error 0x800700c1. Permissions and all appear correct. The IIS Virtual Direcotry Manager for SQLXML 3.0 throws an error when I attempt to Restart Application DLL "Error occurred unloading the application".
Hopeful that someone else may have experiences with SQLXML 3.0 and IIS7 or any insights as to why it may not be working.
David