As far as the .NET 2.0 thing goes, if you have a look in your Acad install directory, you will find a file named 'acad.exe.config'.
If the .net config file for Acad - it's just xml. Open it up and you will see some comments on how to edit it. By default, Acad will always use the latest runtime installed, but you can force it to use a specific version...1.1 for instance.
Hope this helps.
Cheers,
Glenn.