Lately I received a number of questions on the availability of the .NET Framework 2.0 for ISVs. The ISV Guide for Redistributing the .NET Framework and Other Runtime Components which has been published on the MSDN site discusses how managed applications and controls written with Visual Studio that require the .NET Framework (and sometimes other runtime components) can be installed on the computer where the application or control runs. The article describes how ISVs can deploy the necessary runtime components with their applications.
Good to know is also that .NET Framework 2.0 will be made available on Windows Update for Windows XP SP2 and Windows server 2003 OSes. It should be up there by mid-November, soon after the launch. The framework will also be made available on the download center.