I've implemented "Approach 3: Using an HttpModule to Perform Extension-Less URL Rewriting with IIS7" from here: - http://weblogs.asp.net/scottgu/archive/2007/02/26/tip-trick-url-rewriting-with-asp-net.aspx
That is based on URLRewriter module: - http://urlrewriter.net/
It seems to work on my local environment but on production server (running IIS 7) it shows "404 - File or directory not found" page.
I've searched on Google and could not seem to find the solution.
In the end, we went back to IIS 6 and followed the instructions here which worked: - http://urlrewriter.net/index.php/support/installation/windows-server-2003
But someday we may have to upgrade to IIS 7 on a shared hosting environment and the same issue will appear again!