Sorry Mark,
I tried to help but we need more help from rackspace, it is not sufficient to say its a web.config error and point to the doc about breaking changes in .NET 4, I already know about those breaking changes and our Web.config file is correct for .NET 4.
We need rackspace to provide the error details to get further, just saying its a web.config error is not sufficient, we need the exact error. I would restore the original Web.config file (not the one I sent you but the one you sent me) then pressure rackspace for more details.
Best,
Joe