Iis 7 only shows "bad request"

It is literally a blank page with just a "bad query" in the upper left corner, nothing else. I am trying to run an ASP.Net website locally for development purposes. The following is what I did to get to this miserable state: IIS is installed and activated (obviously) and I have enabled all Windows features in

Internet Information Services → World Wide Web Services → Application Development Capabilities

and also under

Internet Information Services -> World Wide Web Services -> General Http Functions

I also edited the hosts file which contains: 127.0.0.1 dev.myproject.com 127.0.0.2 dev.myproject.com

To be honest, I have no idea why 127.0.0.2 is being mapped when my boss showed me the process he added, so I did the same here. I'm pretty sure it will work with 127.0.0.1, so note, if anyone wants to tell me why you want to display 127.0.0.2, I'd be glad too.

Past because it is iis7, but we are using ii6 url rewriting. I followed the following steps in the article: http://www.improve.dk/blog/2006/12/11/making-url-rewriting-on-iis7-work-like-iis6

Long story short (article) under the handler mappings, the static file handler is set to match with *.*

and only called on files, and I have a wildcard handler set to match * and has no restrictions on matching requests to the% windir% \ Microsoft executable. NET \ Framework \ v2.0.50727 \ aspnet_isapi.dll. Also, the Wildcard handler is the last handler to be called. The website is running under a .NET .NET application pool, since this machine is a 64 bit machine, but its 32 bit project that I installed for 32 bit applications is applicable for a classic .Net application pool.

Now until the last step of this process (enabling 32-bit apps) I was getting very nice and common iis7 errors. The ones where you get detailed information about the bugs tell you about possible causes and possible fixes. Thus, iis is the most functional. Other than that, if I request a specific page like dev.myproject.com/default.aspx it gets served properly. But if I try dev.myproject.com/ then I get this Bad Request page. So I think this is a URL rewriting issue.

To add to the intrigue, I went through this process and actually have this project running on my own computer (trying to set it up now as a team) and I can't seem to find any differences between my setup and my colleague. Obviously, there is a difference, I just can't find / understand me for life.

Either way, I throw myself at the collective mercy and thank in advance.