>Does anybody know if ISAPI module has to be installed/enabled on IIS 7 (server 2008) in order to run ASP.NET app?

There was a big change in the architecture - my understanding is that it's not required. There's a comparison between IIS7 and earlier versions here :http://learn.iis.net/page.aspx/243/aspnet-integration-with-iis7/

HTH,
Viv