Classic ASP is not installed by default on IIS 7. YOu have to select the module. Regarding the error, It looks like Asp.net 1.1 is used, again .NET 1.1 is not installed by default on W2k8 / IIS 7. I would verify the dependencies of the application.
Steve Schofield
Windows Server MVP - IIS
http://weblogs.asp.net/steveschofield
http://www.IISLogs.comLog archival solution
Install, Configure, Forget