When i add ajaxtoolkit.dll file to bin folder of my new project that has been created in .net 2005 or .net 2.0 so when i place the ajax controls on my page and written some code on running the project it shows no error but code is not working on status bar i have see Error on this page
When i click the error icon it shows Sys is undefined
so the solution is you have to modify the web.config file like this.
1) Below <Configuraion> tag add this
<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" allowDefinition="MachineToApplication"/>
<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" allowDefinition="Everywhere"/>
<section name="profileService" type="System.Web.Configuration.ScriptingProfileServiceSection, System.Web.Extensions, Version=1.0.61025.0, Culture=neutral, PublicKeyToken=31bf3856ad364e35" requirePermission="false" allowDefinition="MachineToApplication"/>
<section name="authenticationService" type="System.Web.Configuration.ScriptingAuthenticationServiceSection, System.Web.Extensions, Version=1.0.61025.0, Culture=neutral, PublicKeyToken=31bf3856ad364e35" requirePermission="false" allowDefinition="MachineToApplication"/>
</sectionGroup>
</sectionGroup>
</sectionGroup>
</configSections>
2) Below <system.web> add the settings
<pages>
<controls>
<add tagPrefix="asp" namespace="System.Web.UI" assembly="System.Web.Extensions, Version=1.0.61025.0, Culture=neutral, PublicKeyToken=31bf3856ad364e35"/>
</controls>
</pages>
3) Then find compilation debug="false" change like this
<compilation debug="true">
<assemblies>
<add assembly="System.Web.Extensions, Version=1.0.61025.0, Culture=neutral, PublicKeyToken=31bf3856ad364e35"/>
</assemblies>
</compilation>
4) Then below the compilation settings
<httpHandlers>
<remove verb="*" path="*.asmx"/>
<add verb="*" path="*.asmx" validate="false" type="System.Web.Script.Services.ScriptHandlerFactory, System.Web.Extensions, Version=1.0.61025.0, Culture=neutral, PublicKeyToken=31bf3856ad364e35"/>
<add verb="*" path="*_AppService.axd" validate="false" type="System.Web.Script.Services.ScriptHandlerFactory, System.Web.Extensions, Version=1.0.61025.0, Culture=neutral, PublicKeyToken=31bf3856ad364e35"/>
<add verb="GET,HEAD" path="ScriptResource.axd" type="System.Web.Handlers.ScriptResourceHandler, System.Web.Extensions, Version=1.0.61025.0, Culture=neutral, PublicKeyToken=31bf3856ad364e35" validate="false"/>
</httpHandlers>
<httpModules>
<add name="ScriptModule" type="System.Web.Handlers.ScriptModule, System.Web.Extensions, Version=1.0.61025.0, Culture=neutral, PublicKeyToken=31bf3856ad364e35"/>
</httpModules>
5) Then after </system.web> add the settings
<system.web.extensions>
<scripting>
<webServices>
<!-- Uncomment this line to customize maxJsonLength and add a custom converter -->
<!--
<jsonSerialization maxJsonLength="500">
<converters>
<add name="ConvertMe" type="Acme.SubAcme.ConvertMeTypeConverter"/>
</converters>
</jsonSerialization>
-->
<!-- Uncomment this line to enable the authentication service. Include requireSSL="true" if appropriate. -->
<!--
<authenticationService enabled="true" requireSSL = "true|false"/>
-->
<!-- Uncomment these lines to enable the profile service. To allow profile properties to be retrieved
and modified in ASP.NET AJAX applications, you need to add each property name to the readAccessProperties and
writeAccessProperties attributes. -->
<!--
<profileService enabled="true"
readAccessProperties="propertyname1,propertyname2"
writeAccessProperties="propertyname1,propertyname2" />
-->
</webServices>
<!--
<scriptResourceHandler enableCompression="true" enableCaching="true" />
-->
</scripting>
</system.web.extensions>
6) Then add the system.webserver settings
<system.webServer>
<validation validateIntegratedModeConfiguration="false"/>
<modules>
<add name="ScriptModule" preCondition="integratedMode" type="System.Web.Handlers.ScriptModule, System.Web.Extensions, Version=1.0.61025.0, Culture=neutral, PublicKeyToken=31bf3856ad364e35"/>
</modules>
<handlers>
<remove name="WebServiceHandlerFactory-Integrated"/>
<add name="ScriptHandlerFactory" verb="*" path="*.asmx" preCondition="integratedMode" type="System.Web.Script.Services.ScriptHandlerFactory, System.Web.Extensions, Version=1.0.61025.0, Culture=neutral, PublicKeyToken=31bf3856ad364e35"/>
<add name="ScriptHandlerFactoryAppServices" verb="*" path="*_AppService.axd" preCondition="integratedMode" type="System.Web.Script.Services.ScriptHandlerFactory, System.Web.Extensions, Version=1.0.61025.0, Culture=neutral, PublicKeyToken=31bf3856ad364e35"/>
<add name="ScriptResource" preCondition="integratedMode" verb="GET,HEAD" path="ScriptResource.axd" type="System.Web.Handlers.ScriptResourceHandler, System.Web.Extensions, Version=1.0.61025.0, Culture=neutral, PublicKeyToken=31bf3856ad364e35"/>
</handlers>
</system.webServer>
These are the setting you have to modify on your web.config if your are selecting the AJAX - Enabled Websites when you are creating the project so at that time there is no need these setting, these settings are added automatically.
All the best