Can anyone tell me what is the purpose of these entries in the web.config file  I understand that their commented as being for AJAX, but why do they references versions 1.0.61025.0 of the framework?!  I thought we were over using pre V 2.0 :

Also, I looked for a blog describing what the new HTTP Handler "ScriptModule" is doing, but I was unable to find much about it - if someone could direct me to a place where I can find more information about these changes, it would be helpful.

ASP.NET AJAX support -->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"/>

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add assembly="System.Web.Extensions, Version=1.0.61025.0, Culture=neutral, PublicKeyToken=31bf3856ad364e35"/>

Matt, the Http handler works as a proxy of sorts for the DNN AJAX calls. Some info about an approach that Vladan Strigo was taking that may be related is at http://vladan.strigo.net

That entire section is required by ASP.NET AJAX and is the default implmentation.  As mentioned above the version reference it he ASP.NET AJAX version and not the .NET Framework version.  Additionally the handlers that are added are used to facilitate the AJAX requests.