Yes. VS.Net 2005 only works with .Net platform 2.0.

Yes.

It can work with virtually *any* data source.

I taught myself programming on a 386 SX machine with 4 MB of RAM, and
initially using freeware command-line compilers. It was a great experience.
I became very good at making chicken salad out of chicken s**t. And, after
upgrading my compiler to a pirated copy of Borland C++ 2.0, I wrote a BBS
door role-playing game that used ANSI graphics, and took about 6 months to
play through. I would say that was serious development. It took me a year
and a half to write it, using all kinds of freeware and workarounds due to
my lack of proper tools.

Now I have the latest and greatest of everything. Of course I'm happy to
have it. But I wouldn't trade my experience with almost nothing for almost
anything. It made a good programmer out of me. After all, half of
programming is problem-solving, and figuring out workarounds for various
contingencies.

So, are you missing anything? What can you afford? Get the best tools you
can, of course, but it's up to you what you do with them. You can do
anything you set your mind to.

There is an excellent chance that you will end up with some issues. But it
is as reliable a process as it can be, under the circumstances. You
shouldn't have any problems dealing with the leftovers.