I have the same issue as Brian Potter on http://stephenwalther.com/archive/2013/04/30/april-2013-release-of-the-ajax-control-toolkit. I have registered AjaxFileUploadHandler.axd in web.config but it makes no difference. I suspect there is a security issues but where? I don't have an App_Data and am trying to save to ~/Images but the error occurs at the start. The upload complete method is not reached.
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