After upgrading to 3.4 my IIS deployment did not work i.e ‘unable to connect to remoting server. The server or connection may be down’. I made sure I replaced all the dll references in the solution and in the IIS target directory. I spent quite a lot of time to figure out the error but did not succeed. I removed 3.4 and installed the prev. version 3.3 and is working fine. Trust me I did not change anything other than refreshing the refrences and during my troubleshooting I reinstalled/repaired .Net framework 2.0, reinstalled IIS 6.0 and restarted the system many times.
This was the debug log and it did not proceed further.