Add an MVC 2 application to a Nancy site in IIS 7

In IIS 7, I have created a web site using a Nancy project. Then, I added an MVC 2 application to the site using the alias api. I am able to visit defined routes in the Nancy project perfectly. However, when I visit /api, I get the following error:

Could not load type 'Nancy.Hosting.Aspnet.NancyHttpRequestHandler'.

Description: An unhandled exception occurred during the execution of the current web request. Please review the stack trace for more information about the error and where it originated in the code. 

Exception Details: System.Web.HttpException: Could not load type 'Nancy.Hosting.Aspnet.NancyHttpRequestHandler'.

Source Error: 

An unhandled exception was generated during the execution of the current web request. Information regarding the origin and location of the exception can be identified using the exception stack trace below.

Stack Trace: 

[HttpException (0x80004005): Could not load type 'Nancy.Hosting.Aspnet.NancyHttpRequestHandler'.]
   System.Web.Compilation.BuildManager.GetType(String typeName, Boolean throwOnError, Boolean ignoreCase) +11588073
   System.Web.Configuration.HandlerFactoryCache.GetTypeWithAssert(String type) +47
   System.Web.Configuration.HandlerFactoryCache.GetHandlerType(String type) +18
   System.Web.Configuration.HandlerFactoryCache..ctor(String type) +27
   System.Web.HttpApplication.GetFactory(String type) +95
   System.Web.MaterializeHandlerExecutionStep.System.Web.HttpApplication.IExecutionStep.Execute() +352
   System.Web.HttpApplication.ExecuteStep(IExecutionStep step, Boolean& completedSynchronously) +375

It seems that the MVC 2 application is trying to use the NancyHttpRequestHandler to process the request. I say this because routes that are not defined in the Nancy application display a 404 page.

I have tried several things:

1. To Web.config of the MVC 2 application, I added the following to the <system.web/> block:

   <httpHandlers>
     <add verb="*" path="*.mvc" validate="false" type="System.Web.Mvc.MvcHttpHandler, System.Web.Mvc, Version=2.0.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35" />
   </httpHandlers>
   

2. To Web.config of Nancy application, I added the following to the <system.web/> block:

   <httpHandlers>
     <add verb="*" type="Nancy.Hosting.Aspnet.NancyHttpRequestHandler" path="*" />
     <remove verb="*" path="api/*" />
   </httpHandlers>
   

3. I have also tried toying with the settings in the <system.webServer/> and <system.serviceModel/> blocks in both applications.

How can I get the MVC 2 application to behave properly when it is embedded in the Nancy site in IIS 7? Any guidance would be greatly appreciated.