.Net 1.1 vs 2.0

The following sections of this topic describe changes made in different areas of ASP.NET:

Web Site Management
Web Site Administration Tool(wizard to configure web site)
Reserved Folders for Special Functionality
App_code - any class in this folder compiles automatically.App_Date - for DB.
Precompiling Web Sites for Error Checking and Deployment
Navigation - site map for menu.Treeview and siteMappath control for breadcrumb.

Page Design
Consistent Layout using Master Pages
Themes for Consistent Appearance
New Code-Behind Model for Pages - Partial Classes.(clean code).
User-Customizable Web Pages - Web Parts.
New Caching Features - Configurable thru web.config,Sql server dependent cache.
Enhanced Client-Side Functionality - Ajax and Cross page posting.

Controls
Enhancements: support adaptive rendering,Themes,group validator controls.
New Controls:GridView, Treeview, SiteMappath,Login controls,

Data
Data Source Controls:encapsulate connections, query commands, and parameters into a single control,
Connection String Storage:To enhance Web site security, you can store connection strings in a dedicated section of the configuration file.

Security
support for authenticating and authorizing users using membership.

ASP.NET 2.0 adds quite a few new events to allow you to follow the request-processing more closely and precisely.
-PreInit,InitComplete,Preload,LoadComplete,PrerenderComplete.

---------- Framework 2.0

Application domains : Support is provided for unloading an application domain.
Anonymous methods
Generics
Partial classes
SQL Server integration - now Host CLR.
64-Bit support
Iterators: Iterators enable you to use foreach loops on your own custom types.


http://msdn.microsoft.com/en-us/library/fa1h9d0d(VS.85).aspx
http://www.wrox.com/WileyCDA/Section/What-s-New-in-the-NET-Framework-2-0.id-290323.html