Images not rendering in CRVS2010 with VS2010

I'm having the dreaded issue with images not appearing on my reports.

Unfortunately this just happened out of the blue. Everything was working fine in .Net 2.0/CR 10/VS 2008. But someone in the shop got the bright idea that it was time to upgrade all the websites to .Net 4.0 without telling anyone. This necessitated a lot of upgrades one of which was a move from Visual Studio 2008 to Visual Studio 2010. That necessitated the Crystal upgrade to CRVS2010.

So, I'm having the problem with blank images being rendered by CrystalImageHandler.aspx on my development machine and in our test and production environments.

At wits end, I removed anything having to do with Crystal from the application. I created a brand new report that contains one single picture. I created an ASPX page and dragged the viewer to the page. I dragged a report source control to the page. I set the properties for both.

<CR:CrystalReportViewer ID="CrystalReportViewer" 
                        Height="819px" 
                        Width="730px" 
                        HasToggleGroupTreeButton = "False"
                        HasRefreshButton = "False"
                        HasCrystalLogo = "False"
                        HasDrillUpButton = "False"
                        HasSearchButton="false" 
                        EnableDrillDown="false"
                        ToolPanelView="None" 
                        HasZoomFactorList="False"
                        AutoDataBind="true"
                        ReportSourceID="crs"
                        runat="server" >
</CR:CrystalReportViewer>
<CR:CrystalReportSource id="crs" 
                        Report-FileName="CrystalReport.rpt"
                        runat="server">