Development box has Windows 2000 Server, IIS 5, framework 1.1, vs 2003,
sql server 2000

Everything works great until framework 2.0 installed - all I wanted to
do was read up on sql server 2005 and BOL requires framework 2.0.

After installing framework 2.0, vs 2003 window forms programs still
work fine, but I can no longer connect to existing asp.net projects on
localhost nor can I create new projects.

Error I get is: The web server reported the following error when
attempting to create or open the web project located at the following
URL:  http://localhost/WebApplication1 HTTP/1.1 500 Internal Server
Error.

I've done the aspnet_regiis thing; I've gone over all the ACLs to be
sure asp.net account has needed permissions; I've checked the websites
to be sure they are all using asp.net 1.1 and not 2.

Additionally, I cannot start the asp.net state service.

If I uninstall framework 2.0, everything works great again.  I've spent
a week trying to research this in google groups, msdn, and ms
knowledgebase and can find no one else with similar problems.

Any suggestions??  I would eventually like to start testing the vs 2005
waters but I have to keep maintaining my asp.net 1.1 apps at the same
time.