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I've written a Sharepoint feature that will modify the web.config file and add the entries needed to enable the ASP.NET AJAX Control Toolkit.

I've made the feature scoped to the web application level, so to activate the feature (which will write to the web.config file) go to Application Management in central admin, then to Manage Web application features:

Next step is to activate the feature:

I was thinking that I would just provide the source code and that you could include it in your solution project as this functionality doesn't do much as a stand alone feature.

To use this feature you will need the source, I'm thinking about uploading to CodePlex, I'm just not sure if one code file is enough to warrant this.

To add this feature to your existing project you should include the following information in your feature.xml:

<?xml version="1.0" encoding="utf-8" ?>
<Feature xmlns="http://schemas.microsoft.com/sharepoint/"
         Id="YOUR GUID ID"
         Scope="WebApplication"
         Title="ASP.NET Ajax web.config update tool"
         Description="Adds web.config entries to enable ASP.NET Ajax"
         ReceiverAssembly="Full name and version of your assembly"
         ReceiverClass="Features.AjaxWebConfigInstaller"
         Hidden="False"
         >

</Feature>