persistent problem with webmatrix cshtml page rendering

Let me start off by saying i almost never write to forums because up until now with some reseach with search engines: bing, google, etc. one can find what you are looking for. Such is not the case with the mess .cshtml file rendering issue.

 the problem:

Here are the config setting from web.config:

<?xml version="1.0" encoding="utf-8"?>
<configuration>
  <configSections>
      <remove name="uri" />
      <section name="uri" type="System.Configuration.UriSection, System, Version=2.0.0.0, Culture=neutral, PublicKeyToken=b77a5c561934e089" />
    <sectionGroup name="dotNetOpenAuth" type="DotNetOpenAuth.Configuration.DotNetOpenAuthSection, DotNetOpenAuth.Core">
      <section name="messaging" type="DotNetOpenAuth.Configuration.MessagingElement, DotNetOpenAuth.Core" requirePermission="false" allowLocation="true" />
      <section name="reporting" type="DotNetOpenAuth.Configuration.ReportingElement, DotNetOpenAuth.Core" requirePermission="false" allowLocation="true" />
      <section name="oauth" type="DotNetOpenAuth.Configuration.OAuthElement, DotNetOpenAuth.OAuth" requirePermission="false" allowLocation="true" />
      <section name="openid" type="DotNetOpenAuth.Configuration.OpenIdElement, DotNetOpenAuth.OpenId" requirePermission="false" allowLocation="true" />
    </sectionGroup>
  </configSections>
  <system.net>
    <defaultProxy enabled="true" />
    <settings>
      <!-- This setting causes .NET to check certificate revocation lists (CRL) 
			     before trusting HTTPS certificates.  But this setting tends to not 
			     be allowed in shared hosting environments. -->
      <!--<servicePointManager checkCertificateRevocationList="true"/>-->
    </settings>
  </system.net>
  <runtime>
    <!-- This prevents the Windows Event Log from frequently logging that HMAC1 is being used (when the other party needs it). -->
    <legacyHMACWarning enabled="0" />
  </runtime>
  <dotNetOpenAuth>
    <messaging>
      <untrustedWebRequest>
        <whitelistHosts>
          <!-- Uncomment to enable communication with localhost (should generally not activate in production!) -->
          <!--<add name="localhost" />-->
        </whitelistHosts>
      </untrustedWebRequest>
    </messaging>
    <!-- Allow DotNetOpenAuth to publish usage statistics to library authors to improve the library. -->
    <reporting enabled="false" />
    <openid>
      <relyingParty>
        <security requireSsl="false">
          <!-- Uncomment the trustedProviders tag if your relying party should only accept positive assertions from a closed set of OpenID Providers. -->
          <!--<trustedProviders rejectAssertionsFromUntrustedProviders="true">
						<add endpoint="https://www.google.com/accounts/o8/ud" />
					</trustedProviders>-->
        </security>
        <behaviors>
          <!-- The following OPTIONAL behavior allows RPs to use SREG only, but be compatible
					     with OPs that use Attribute Exchange (in various formats). -->
          <add type="DotNetOpenAuth.OpenId.RelyingParty.Behaviors.AXFetchAsSregTransform, DotNetOpenAuth.OpenId.RelyingParty" />
        </behaviors>
      </relyingParty>
    </openid>
  </dotNetOpenAuth>
  <system.web>
    <compilation>
      <assemblies>
        <add assembly="System.Configuration, Version=4.0.0.0, Culture=neutral, PublicKeyToken=b03f5f7f11d50a3a" />
      </assemblies>
    </compilation>
  </system.web>
  <!--<uri>
    See an error due to this section?  When targeting .NET 3.5, please add the following line to your <configSections> at the top of this file:
		<section name="uri" type="System.Configuration.UriSection, System, Version=2.0.0.0, Culture=neutral, PublicKeyToken=b77a5c561934e089" />
    
    The uri section is necessary to turn on .NET 3.5 support for IDN (international domain names),
	     which is necessary for OpenID urls with unicode characters in the domain/host name. 
	     It is also required to put the Uri class into RFC 3986 escaping mode, which OpenID and OAuth require.
    <idn enabled="All" />
    <iriParsing enabled="true" />
  </uri>-->
    <system.data>
        <DbProviderFactories>
            <remove invariant="System.Data.SqlServerCe.4.0" />
            <add invariant="System.Data.SqlServerCe.4.0" name="Microsoft® SQL Server® Compact 4.0" description=".NET Framework Data Provider for Microsoft SQL Server Compact" type="System.Data.SqlServerCe.SqlCeProviderFactory, System.Data.SqlServerCe, Version=4.0.0.0, Culture=neutral, PublicKeyToken=89845dcd8080cc91" />
        </DbProviderFactories>
    </system.data>
    <system.webServer>
      <security>
            <requestFiltering>
                <fileExtensions>
                    <remove fileExtension=".cshtml" />
                    <add fileExtension=".cshtml" allowed="true" />
                </fileExtensions>
            </requestFiltering>
       </security>
        <validation validateIntegratedModeConfiguration="true" />     
    <modules runAllManagedModulesForAllRequests="true" />
    <handlers accessPolicy="Read, Script, Write, Execute">
        <clear />
        <remove name="cshtml-Integrated-4.0" />
        <remove name="cshtm-Integrated-4.0" />
        <remove name="cshtml-ISAPI-4.0_32bit" />
        <remove name="cshtml-ISAPI-4.0_64bit" />        
        <add name="cshtml-ISAPI-4.0_32bit" path="*.cshtml" verb="GET,HEAD,POST,DEBUG" resourceType="Unspecified" requireAccess="Script" scriptProcessor="C:\Windows\Microsoft.NET\Framework\v4.0.30319\aspnet_isapi.dll" preCondition="classicMode,runtimeVersionv4.0,bitness32" responseBufferLimit="0" />
        <add name="cshtml-ISAPI-4.0_64bit" path="*.cshtml" verb="GET,HEAD,POST,DEBUG" resourceType="Unspecified" requireAccess="Script" scriptProcessor="C:\Windows\Microsoft.NET\Framework64\v4.0.30319\aspnet_isapi.dll" preCondition="classicMode,runtimeVersionv4.0,bitness64" responseBufferLimit="0" />        
    </handlers>
    </system.webServer>
</configuration>

for the record:

yes .NET 4.0 is installed that is an obvious requirement
yest the app pool for this app is set to "allow 32 bit applictions" and the app pool is set to run in integrated mode.
server: windows server 2008 r2

and as you can see from above runAllManagedModulesForAllRequests="true" is set to true. so please don't ask me these silly questions that anyone who
that has done any troubleshooting would already have done.

Can anyone provide a real reason why this is not working correctly and better yet how to fix the problem. This is extremely frustrating and
has already cost 5 days of wasted time chasing this. Thank You in advance.