SecuritException – AspNetHostingPermission
[Edit]
In normal case this indicates that the code want to have more access permissions then the ASP.NET are able to give to the application.
Solution for Windows 2008
In IIS manager select the site, in the features view double click .NET Trust Levels and select a higher trust level for your application.
Extremely strange behavior on a host running on VMware
This error seams to occur when a corrupt assembly exists in the application.
Solution
Replace all assemblies in the bin/ folder.
EPiServer version
'EPiServer CMS 5'