I had a similar problem and had to tell ASP.NET in configuration to use the 3.5 compiler as follows by modifying Web.config
.
I've copied and pasted the following from my code. You have to change value="v3.5" to value="v4.0". The compiler type strings might also change.
<configuration>
<!-- ... other configuraiton stuff ... -->
<system.codedom>
<compilers>
<compiler language="c#;cs;csharp" extension=".cs" type="Microsoft.CSharp.CSharpCodeProvider,System, Version=2.0.0.0, Culture=neutral, PublicKeyToken=b77a5c561934e089" warningLevel="4">
<providerOption name="CompilerVersion" value="v3.5"/>
<providerOption name="WarnAsError" value="false"/>
</compiler>
<compiler language="vb;vbs;visualbasic;vbscript" extension=".vb" type="Microsoft.VisualBasic.VBCodeProvider, System, Version=2.0.0.0, Culture=neutral, PublicKeyToken=b77a5c561934e089" warningLevel="4">
<providerOption name="CompilerVersion" value="v3.5"/>
<providerOption name="OptionInfer" value="true"/>
<providerOption name="WarnAsError" value="false"/>
</compiler>
</compilers>
</system.codedom>
</configuration>
In my case the 2.0 compiler was being used instead of 3.5. I was working in an IIS 7, ASP.NET Website project.
You might glean additional insight from: