One of two errors come to mind. You didn't uninstall 1.0 before moving to 2.0 or you don't have all the proper configuration in the web.config file.
Are you using Masterpage? If yes, there is bug but you should be able to run it anyway.
Here is a link you can check.
http://weblogs.asp.net/scottgu/archive/2006/11/16/gotcha-lost-html-intellisense-within-asp-net-ajax-controls.aspx
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