Hi Brian,
Thanks for your post!
No, although multiple versions of the CLR may exist on a given machine,
only one version may run in a particular process. So once the host chooses
which version to load, all managed code that runs in that process will use
that version of the CLR. For more information, please refer to the MSDN
article below:
"Microsoft .NET: Implement a Custom Common Language Runtime Host for Your
Managed App"
http://msdn.microsoft.com/msdnmag/issues/01/03/clr/
Regarding your issue, I think we can choose .Net2.0. Because .Net2.0 has
backward compatibility, .Net1.1 application should work well in .Net2.0
CLR. Please refer to the link below:
"Testing compatibility for Whidbey/Everett"
http://blogs.msdn.com/danielfe/archive/2003/12/03/51921.aspx
However, we still should take care of the breaking changes in .Net2.0:
"Breaking Changes in .NET Framework 2.0"
http://msdn.microsoft.com/netframework/programming/breakingchanges/default.a
spx
Hope this helps!
Best regards,
Jeffrey Tan
Microsoft Online Partner Support

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