This error occurs due to the fact that you do not have .template mapping in the IIS virtual directory. The reason why you did not experience that error in your development machine is because the mapping is added automatically on Sitefinity installation. To add the mapping in IIS 5 follow these steps:
1. Go to your project virtual directory and right -click properties.
2. On the Virtual Directory tab click Configuration and click Add new mapping.
3. For Executable write the path to the isapi dll which is the same as for the .aspx mapping for example.
4. For Extension write .template
5. Clear the 'Check that file exists' checkbox.
Let me know if you still experience the problem.
the Telerik team