It sounds like one of the tags in the configSections portion of your web.config is a little off, particularly the very first tag in the configSections area. Here's the code chunk out of one of my working Ajax projects
<configSections>
<sectionGroup name="system.web.extensions" type="System.Web.Configuration.SystemWebExtensionsSectionGroup, System.Web.Extensions, Version=1.0.61025.0, Culture=neutral, PublicKeyToken=31bf3856ad364e35">
<sectionGroup name="scripting" type="System.Web.Configuration.ScriptingSectionGroup, System.Web.Extensions, Version=1.0.61025.0, Culture=neutral, PublicKeyToken=31bf3856ad364e35">
<section name="scriptResourceHandler" type="System.Web.Configuration.ScriptingScriptResourceHandlerSection, System.Web.Extensions, Version=1.0.61025.0, Culture=neutral, PublicKeyToken=31bf3856ad364e35" requirePermission="false"/>
<sectionGroup name="webServices" type="System.Web.Configuration.ScriptingWebServicesSectionGroup, System.Web.Extensions, Version=1.0.61025.0, Culture=neutral, PublicKeyToken=31bf3856ad364e35">
<section name="jsonSerialization" type="System.Web.Configuration.ScriptingJsonSerializationSection, System.Web.Extensions, Version=1.0.61025.0, Culture=neutral, PublicKeyToken=31bf3856ad364e35" requirePermission="false" />
<section name="profileService" type="System.Web.Configuration.ScriptingProfileServiceSection, System.Web.Extensions, Version=1.0.61025.0, Culture=neutral, PublicKeyToken=31bf3856ad364e35" requirePermission="false" />
<section name="authenticationService" type="System.Web.Configuration.ScriptingAuthenticationServiceSection, System.Web.Extensions, Version=1.0.61025.0, Culture=neutral, PublicKeyToken=31bf3856ad364e35" requirePermission="false" />
</sectionGroup>
</sectionGroup>
</sectionGroup>
</configSections>
... you might just try copy and pasting this over the existing configSections in your web.config file, and see if it sorts things out. Make sure it comes immediately after the <configuration> tag (and it wouldn't hurt to make a backup copy of your web.config file beforehand... just in case
) I also just noticed that the error message you included said that the message referenced "Sytem.Web.Extensions". If this was an exact copy and paste from the error window, then it looks like you might have left out the second "s" in "System".