The basic problem is that there is a mixup between MVC 4 Developer Preview and MVC 4 Beta .dlls in the project. To see which version you have right click the .dll file in Windows Explorer and choose Properties->Details. Look for 'File Version' :
- MVC 4 Developer Preview is version 4.0.10906.0
- MVC 4 Beta is version 4.0.20126.16343
Make sure all says the MVC 4 beta version number (replace the .dlls from a fresh MVC 4 Beta project if necessary) for these files:
- System.Web.Mvc
- System.Web.WebPages
- System.Web.Razor
- System.Web.WebPages.Deployment
- System.Web.WebPages.Razor
It should then work.
(Technical: It is actually the older version of System.Web.Mvc.dll that tries to use a removed/changed item in the newer System.Dll.WebPages library. DisplayMode have been replaced with DisplayModeProvider)