Yes, it refers to the mojoportal Web.config file, but this is not from the mojoportal Web.config:
<remove name="ScriptResource" />
831: <add name="svc-ISAPI-2.0" path="*.svc" verb="*" modules="IsapiModule" scriptProcessor="%SystemRoot%\Microsoft.NET\Framework\v2.0.50727\aspnet_isapi.dll" resourceType="Unspecified" preCondition="classicMode,runtimeVersionv2.0,bitness32" />
832: <add name="svc-Integrated" path="*.svc" verb="*" type="System.ServiceModel.Activation.HttpHandler, System.ServiceModel, Version=3.0.0.0, Culture=neutral, PublicKeyToken=b77a5c561934e089" resourceType="Unspecified" preCondition="integratedMode" />
So there is another config file interfering.
Did you look if there is another Web.config in the folder above mojoportal as I previously suggested? If there is one there then it is interfering.
IIS 7 should work the same on Win 2008 as on Vista.
Hope it helps,
Joe