Problem running MVC3 app in IIS 7

I am having a problem getting a MVC 3 project running in IIS7 on a computer running Windows 7 Home-64 bit. Here is what I did.

1. Installed IIS 7.
2. Accessed the server and got the IIS welcome page.
3. Created a directory named d:\MySite and copied the MVC application to it. (The MVC app is just the standard app that is created when you create a new MVC3 project in visual studio. It just displays a home page and an account logon page. It runs fine inside the Visual Studio development server and I also copied it out to my hosting site and it works fine there)
4. Started IIS management console.
5. Stopped the default site.
6. Added a new site named "MySite" with a physical directory of "d:\Mysite"
7. Changed the application pool named MySite to use .Net Framework 4.0, Integrated pipeline

When I access the site in the browser I get a list of the files in the d:\MySite directory. It is as if IIS is not recognizing the contents of d:\MySite as an MVC application.

What do I need to do to resolve this?

As requested, here is the web.config:

    <?xml version="1.0"?>
<!--
  For more information on how to configure your ASP.NET application, please visit
  http://go.microsoft.com/fwlink/?LinkId=152368
  -->

<configuration>
  <connectionStrings>
    <add name="ApplicationServices"
         connectionString="data source=.\SQLEXPRESS;Integrated Security=SSPI;AttachDBFilename=|DataDirectory|aspnetdb.mdf;User Instance=true"
         providerName="System.Data.SqlClient" />
  </connectionStrings>

  <appSettings>
    <add key="ClientValidationEnabled" value="true"/> 
    <add key="UnobtrusiveJavaScriptEnabled" value="true"/> 
  </appSettings>

  <system.web>
    <compilation debug="true" targetFramework="4.0">
      <assemblies>
        <add assembly="System.Web.Abstractions, Version=4.0.0.0, Culture=n