many suggestions like
but none of these worked for me then found following article on msdn which was good and it resolved the problem
how to resovle see below.l
To resolve this problem, install the Static Content feature of the Common HTTP Features under the Web Server role on the webserver. If the Static Content feature is already installed, then simply edit the StaticFileHandler mappings using the IIS Manager user interface to add StaticFileModule to the module list.
To install the Static Content feature on Windows Server 2008 and Windows Server 2008 R2, follow these steps:
a. Open Server Manager, and then expand Roles.
b. Right-click Web Server (IIS), and then click Add Role Services.
c. Under Web Server, click to select the "Static Content" check box.
d. Click Next to complete the installation.
To edit the StaticFileHandler mappings, follow these steps:
a. Click Start, type Inetmgr in the Start Search box, and then click Inetmgr in the Programs list.
Note If you are prompted for an administrator password or for a confirmation, type the password or click Continue.
b. In IIS Manager, expand server name, expand Web sites, and then click the web site that you want to modify the settings for.
c. In Features view, double-click Handler Mappings.
d. In the Handler Mappings pane, right-click the StaticFile handler mapping, and then click Edit.
e. In the Edit Module Mapping dialog box, add StaticFileModule in Module box by manually typing it, and then click OK.
Note The default entries in the Module box are StaticFileModule,DefaultDocumentModule,DirectoryListingModule