I'm running into an issue I can't seem to resolve.  Below are the steps I've taken and details.  Any help would be appreciated.

OS: Windows Server 2008 R2
SQL Server Express 2008 R2
MojoPortal 2.3.6.1 .net 4

-IIS Admin - Setup new mojoAppPool with .NET v4.0 Integrated pipeline and NetworkService as the Identity
-Download mojoportal-2-3-6-1-mssql-net40-deploymentfiles.zip and extract files to a new directory.
-Copy contents of the wwwroot directory to c:\inetpub\wwwroot\ct as I want to run mojoPortal under the ct subdirectory.
-Edit user.config with connection string parameters for my database.
-Change ACL for NetworkService on the c:\inetpub\wwwroot\ct directory to have read access and then full control on ct\Data and ct\App_Data.
-IIS Admin - Right click on ct directory and select "Convert to Application" and then change Basic Settings to mojoAppPool.

Hit the /ct directory in the browser and get 500 - Internal Server Error

I'm guessing it isn't reading the web.config but I didn't change it from the download (only modified user.config).
Also something that points to the same thing is if in IIS Admin I open the "Pages and Controls" option I get the following error:
Error: Unrecognized attribute 'controlRenderingCompatibilityVersion'
and it's referencing the web.config in the ct directory.

Additionally if I try to open the ".NET Compilation" section I get an error:
Error: Unrecognized element 'folderLevelBuildProviders'
but this is referencing the web.config in the C:\Windows\Microsoft.NET\Framework64\v4.0.30319\config directory.

Any help would be appreciated as I've never had any trouble installing mojo before but I'm stuck here.

Thanks