I'm in the process of converting some web applications from v1.1 to v2.0 which is proving interesting.

Initially I used a blank ASP.NET Web Site and added in the web applications using the IIS option and C# library projects.
I got loads of errors and warnings when compiling. I have needed to qualify the use of my Menu class with its namespace as the Menu class is now part of the framework and some new methods for registering client script blocks. A forum post and some time later I decided to start again using the Web Application Project model (ironic aside: under Step 6 there is a link to a MSDN site regarding breaking changes in v2.0 - it just happens to be a broken link) which is a download for VS 2005.

Overall, I have found this better so far as there are less compilation errors. However, one of the few I had I only got 3 results from google and only 1 usable and correct solution.

The whole solution now compiles but there are some hiccups in the execution which I am still sorting out.