Thanks Mr.palli,
I got it in windows server 2008(iis7.0)
Now I am able to host visual web gui application on IIS 7.0 or windows server 2008.
I had done the following configuration in iis
step1:-
in Add Script Map dialog enter:
Request path: *.wgx
Executable: C:\Windows\Microsoft.NET\Framework\v2.0.50727\aspnet_isapi.dll
Name: VisualWebGUI-Page
Then click Request Restrictions...
Clear Checkbox: Invoke handler only if request is mapped to:
Click OK
Click OK again on Add Script Map
Step2:-
Change the application pool to classic.net apppool at basicsettings tab in under Actions menu.
Step3:-
give iis_iusers read permissions for web.config
Thats it . It should work and have to work in windows server 2008.