Atlas permissions problem wont let website build

I am working on a asp 2.0 web site, from VS 2005, which uses Atlas.  I use VS 5005 on my development machine and use the files from the web server via a mapped drive (drive Z:)   The website (which I just inherited) operates fine but when I build the website I get this error:

Error 105 Request for the permission of type 'System.Web.AspNetHostingPermission, System, Version=2.0.0.0, Culture=neutral, PublicKeyToken=b77a5c561934e089' failed. Z:\myWebSiteDirectory\Atlas\Default.aspx      10

When I double click the error, it takes me to a line that reads  
<atlas:ScriptManager ID="ScriptManager1" runat="server" >

The question is: How do I get rid of this error so that the site builds?

Here is what I have already tried:

In the code behind for the page that is generating the error I prefaced the class declaration with the following, so that it reads:
<AspNetHostingPermission(SecurityAction.Demand, Level:=AspNetHostingPermissionLevel.Minimal, Unrestricted:=True)> _  Partial Class Atlas_Default

Also, on the web server I created a Permission Set and a Code Group, through which I tried to give the website code the permission it needs - none of which helped.  In the .NET Framework 2.0 Configuration tool I did this:  At the Machine level I created a copy of the Full Permissions permission set and tried different Code Group definitions such as
  Site = mySiteName
  Site = 10.9.9.9  <my sites IP >
  Strong Name, PublicKey = b77a5c561934e089