I was wondering if there is anyone that has gotten past the ( Unrecognized tag prefix or device filter 'ajaxtoolkit' ) even though i have it registered on the page and I also have it registered in my web.config file. 

Please elaborate which version of the toolkit are you using, what version of .NET project is targeting, how exactly did you add toolkit to the site, page and web.config.

 Can do :)

I am using the 3.5 tool kit and I put the following into the page and the web.config:

 Below is what is in the page.

                <%@ Register assembly="AjaxControlToolkit" namespace="AjaxControlToolkit" tagprefix="ajaxToolkit" %>

Below is what is in web.config:

                <add tagPrefix="asp" namespace="System.Web.UI" assembly="System.Web.Extensions, Version=1.0.61025.0, Culture=neutral, PublicKeyToken=31bf3856ad364e35"/>
                <add tagPrefix="ajaxToolkit" namespace="AjaxControlToolkit" assembly="AjaxControlToolkit" />

I installed it by unzipping this into a new folder then adding a new tab on the toolbox.  Right clicking and going to choose items and when the .Net Framework Components comes up I, browsed to where the ajaxtoolkit.dll file was located it and added it to the .NET Framework Components list.  Everything went fine when doing so the bad part is that I just can't use it.  I didn't have any problems with the beta edition of VS 2008.

If there is any other information that is needed please let me know cause I would really like to get this solved.

Version of VWD that I am running is:  Microsoft Visual Studio 2008

                                                        Version 9.0.21022.8 RTM
 

If you are using 3.5 toolkit, then you are targeting .NET 3.5. Therefore you should remove any references to System.Web.Extensions 1.0. 1.0 version is only for .NET 2.0 + AJAX toolkit 1.0. .NET 3.5 includes extensions in it. For clarity, possible configurations are

1. .NET 2.0 + AJAX 1.0 + Ajax Toolkit 1.0

2. .NET 3.5 + Ajax Toolkit 3.5

 Understood, and I have removed that line out and it sitll doesn't respond right.  I do have intelisense though which I thought was an odd thing.

So what is not working still?

I'm still getting the same error as before. 

OK, you said "I do have intelisense" which confised me. Try deleting everything in C:\Users\USER-NAME\AppData\Roaming\Microsoft\VisualStudio\9.0\ReflectedSchemas. Also, remove any AJAX 1.0 assemblies from bin.

Can you try the following:

Create a new 3.5 website. Add an asp button control to Default.aspx. Drag and drop a ConfirmButton onto the asp button control. Then let me know what if says in the web.config and what the register directive looks like. Thanks.

Here is what my web.config looks like

?xml version="1.0"?>
<!--
    Note: As an alternative to hand editing this file you can use the
    web admin tool to configure settings for your application. Use
    the Website->Asp.Net Configuration option in Visual Studio.
    A full list of settings and comments can be found in
    machine.config.comments usually located in
    \Windows\Microsoft.Net\Framework\v2.x\Config
-->
<configuration>
    <configSections>
        <sectionGroup name="system.web.extensions" type="System.Web.Configuration.SystemWebExtensionsSectionGroup, System.Web.Extensions, Version=3.5.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35">
            <sectionGroup name="scripting" type="System.Web.Configuration.ScriptingSectionGroup, System.Web.Extensions, Version=3.5.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35">
                <section name="scriptResourceHandler" type="System.Web.Configuration.ScriptingScriptResourceHandlerSection, System.Web.Extensions, Version=3.5.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35" requirePermission="false" allowDefinition="MachineToApplication"/>
                <sectionGroup name="webServices" type="System.Web.Configuration.ScriptingWebServicesSectionGroup, System.Web.Extensions, Version=3.5.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35">
                    <section name="jsonSerialization" type="System.Web.Configuration.ScriptingJsonSerializationSection, System.Web.Extensions, Version=3.5.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35" requirePermission="false" allowDefinition="Everywhere"/>
                    <section name="profileService" type="System.Web.Configuration.ScriptingProfileServiceSection, System.Web.Extensions, Version=3.5.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35" requirePermission="false" allowDefinition="MachineToApplication"/>
                    <section name="authenticationService" type="System.Web.Configuration.ScriptingAuthenticationServiceSection, System.Web.Extensions, Version=3.5.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35" requirePermission="false" allowDefinition="MachineToApplication"/>
                    <section name="roleService" type="System.Web.Configuration.ScriptingRoleServiceSection, System.Web.Extensions, Version=3.5.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35" requirePermission="false" allowDefinition="MachineToApplication"/>
                </sectionGroup>
            </sectionGroup>
        </sectionGroup>
    </configSections>
    <appSettings/>
    <connectionStrings/>
    <system.web>
        <!--
            Set compilation debug="true" to insert debugging
            symbols into the compiled page. Because this
            affects performance, set this value to true only
            during development.

            Visual Basic options:
            Set strict="true" to disallow all data type conversions
            where data loss can occur.
            Set explicit="true" to force declaration of all variables.
        -->
        <compilation debug="false" strict="false" explicit="true">
            <assemblies>
                <add assembly="System.Core, Version=3.5.0.0, Culture=neutral, PublicKeyToken=B77A5C561934E089"/>
                <add assembly="System.Web.Extensions, Version=3.5.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35"/>
                <add assembly="System.Data.DataSetExtensions, Version=3.5.0.0, Culture=neutral, PublicKeyToken=B77A5C561934E089"/>
                <add assembly="System.Xml.Linq, Version=3.5.0.0, Culture=neutral, PublicKeyToken=B77A5C561934E089"/>
                <add assembly="System.Design, Version=2.0.0.0, Culture=neutral, PublicKeyToken=B03F5F7F11D50A3A"/>
                <add assembly="System.Web.Extensions.Design, Version=3.5.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35"/>
                <add assembly="System.Windows.Forms, Version=2.0.0.0, Culture=neutral, PublicKeyToken=B77A5C561934E089"/></assemblies>
        </compilation>
        <pages>
            <namespaces>
                <clear/>
                <add namespace="System"/>
                <add namespace="System.Collections"/>
                <add namespace="System.Collections.Generic"/>
                <add namespace="System.Collections.Specialized"/>
                <add namespace="System.Configuration"/>
                <add namespace="System.Text"/>
                <add namespace="System.Text.RegularExpressions"/>
                <add namespace="System.Linq"/>
                <add namespace="System.Xml.Linq"/>
                <add namespace="System.Web"/>
                <add namespace="System.Web.Caching"/>
                <add namespace="System.Web.SessionState"/>
                <add namespace="System.Web.Security"/>
                <add namespace="System.Web.Profile"/>
                <add namespace="System.Web.UI"/>
                <add namespace="System.Web.UI.WebControls"/>
                <add namespace="System.Web.UI.WebControls.WebParts"/>
                <add namespace="System.Web.UI.HtmlControls"/>
            </namespaces>
            <controls>
                <add tagPrefix="asp" namespace="System.Web.UI" assembly="System.Web.Extensions, Version=3.5.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35"/>
                <add tagPrefix="asp" namespace="System.Web.UI.WebControls" assembly="System.Web.Extensions, Version=3.5.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35"/>
            </controls>
        </pages>
        <!--
            The <authentication> section enables configuration
            of the security authentication mode used by
            ASP.NET to identify an incoming user.
        -->
        <authentication mode="Windows"/>
        <!--
            The <customErrors> section enables configuration
            of what to do if/when an unhandled error occurs
            during the execution of a request. Specifically,
            it enables developers to configure html error pages
            to be displayed in place of a error stack trace.

        <customErrors mode="RemoteOnly" defaultRedirect="GenericErrorPage.htm">
            <error statusCode="403" redirect="NoAccess.htm" />
            <error statusCode="404" redirect="FileNotFound.htm" />
        </customErrors>
        -->
        <httpHandlers>
            <remove verb="*" path="*.asmx"/>
            <add verb="*" path="*.asmx" validate="false" type="System.Web.Script.Services.ScriptHandlerFactory, System.Web.Extensions, Version=3.5.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35"/>
            <add verb="*" path="*_AppService.axd" validate="false" type="System.Web.Script.Services.ScriptHandlerFactory, System.Web.Extensions, Version=3.5.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35"/>
            <add verb="GET,HEAD" path="ScriptResource.axd" type="System.Web.Handlers.ScriptResourceHandler, System.Web.Extensions, Version=3.5.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35" validate="false"/>
        </httpHandlers>
        <httpModules>
            <add name="ScriptModule" type="System.Web.Handlers.ScriptModule, System.Web.Extensions, Version=3.5.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35"/>
        </httpModules>
    </system.web>
    <system.codedom>
        <compilers>
            <compiler language="c#;cs;csharp" extension=".cs" warningLevel="4" type="Microsoft.CSharp.CSharpCodeProvider, System, Version=2.0.0.0, Culture=neutral, PublicKeyToken=b77a5c561934e089">
                <providerOption name="CompilerVersion" value="v3.5"/>
                <providerOption name="WarnAsError" value="false"/>
            </compiler>
            <compiler language="vb;vbs;visualbasic;vbscript" extension=".vb" warningLevel="4" type="Microsoft.VisualBasic.VBCodeProvider, System, Version=2.0.0.0, Culture=neutral, PublicKeyToken=b77a5c561934e089">
                <providerOption name="CompilerVersion" value="v3.5"/>
                <providerOption name="OptionInfer" value="true"/>
                <providerOption name="WarnAsError" value="false"/>
            </compiler>
        </compilers>
    </system.codedom>
    <!--
        The system.webServer section is required for running ASP.NET AJAX under Internet
        Information Services 7.0.  It is not necessary for previous version of IIS.
    -->
    <system.webServer>
        <validation validateIntegratedModeConfiguration="false"/>
        <modules>
            <remove name="ScriptModule"/>
            <add name="ScriptModule" preCondition="managedHandler" type="System.Web.Handlers.ScriptModule, System.Web.Extensions, Version=3.5.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35"/>
        </modules>
        <handlers>
            <remove name="WebServiceHandlerFactory-Integrated"/>
            <remove name="ScriptHandlerFactory"/>
            <remove name="ScriptHandlerFactoryAppServices"/>
            <remove name="ScriptResource"/>
            <add name="ScriptHandlerFactory" verb="*" path="*.asmx" preCondition="integratedMode" type="System.Web.Script.Services.ScriptHandlerFactory, System.Web.Extensions, Version=3.5.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35"/>
            <add name="ScriptHandlerFactoryAppServices" verb="*" path="*_AppService.axd" preCondition="integratedMode" type="System.Web.Script.Services.ScriptHandlerFactory, System.Web.Extensions, Version=3.5.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35"/>
            <add name="ScriptResource" preCondition="integratedMode" verb="GET,HEAD" path="ScriptResource.axd" type="System.Web.Handlers.ScriptResourceHandler, System.Web.Extensions, Version=3.5.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35"/>
        </handlers>
    </system.webServer>
    <runtime>
        <assemblyBinding xmlns="urn:schemas-microsoft-com:asm.v1">
            <dependentAssembly>
                <assemblyIdentity name="System.Web.Extensions" publicKeyToken="31bf3856ad364e35"/>
                <bindingRedirect oldVersion="1.0.0.0-1.1.0.0" newVersion="3.5.0.0"/>
            </dependentAssembly>
            <dependentAssembly>
                <assemblyIdentity name="System.Web.Extensions.Design" publicKeyToken="31bf3856ad364e35"/>
                <bindingRedirect oldVersion="1.0.0.0-1.1.0.0" newVersion="3.5.0.0"/>
            </dependentAssembly>
        </assemblyBinding>
    </runtime>
</configuration>