I've recently begun moving my custom ArcGIS Engine code from 9.3 (VS2005) to 10.0 (VS2010)... I'm targeting Microsoft's .NET 3.5 SP1 framework ... HOWEVER, I have noticed that all of my ESRI.* referenced assembly properties state they are compiled against the 2.0 .NET runtime.
Are there proper 3.5 assemblies around? Am I doing something wrong, or just misinterpreting the 3.5 requirement.