Yep that worked. Just to recap:
I first downloaded ASP.NET AJAX 1.0 (since i'm using .NET 2.0... apparently if you are on .NET 3.5 you dont need this??)
http://www.microsoft.com/downloads/details.aspx?FamilyID=ca9d90fa-e8c9-42e3-aa19-08e2c027f5d6&displaylang=en
Then I downloaded the AJAXControlToolit-NoSource.zip from here version 10920 (does it work with newer versions??): http://www.codeplex.com/AtlasControlToolkit/Release/ProjectReleases.aspx?ReleaseId=4941
I unzipped the file and went into the SampleWebsite\Bin directory and copied all the files and then pasted into my wwwroot\bin (wherever my dotnetnuke installation is...wwwroot being the root of my DNN install)
Just to add another tip/issue/fix that I ran into. When I copied the files into the bin directory the files assumed the ownership of "Administrator" since that's who I was logged into the machine as. When I initially tried to visit the site after uploading the files I recieved the generic:
Server Error in '/' Application.
Runtime Error
I just had to go to the properties of the Bin directory, into the Security Tab, Advanced Button, Check the option for "replace permission entries on all child objects...etc.etc.." and hit OK to reapply my custom security permissions (my website runs as a special user account and not the generic IUSR_Machinename).
So, once you copy the files over make sure the user your website runs as has permissions on the files or it will throw an error and your site wont come up at all!! (I was only clued into this by looking in the Application event log and seeing a ASP.NET Warning Event ID: 1310 Event Code: 3008 with a few lines at the bottom saying:
Exception information:
Exception type: HttpException
Exception message: Could not load file or assembly 'AjaxControlToolkit' or one of its dependencies. Access is denied.
Hopefully this info helps someone else.
Thanks for the clarification Chris.
~C