Hi there,
today I converted my .Net 2.0 Visual Studio 2005 Web Application Project to Visual studio 2008 and .Net 3.5. I also moved it to a different machine. I ran into an error while converting some of the projects in my solution, preventing the entire project to load. I found a blogpost describing the error as being caused by a reference to IIS.
You can simply overcome this by opening your project's configuration file (.csproj) and changing the <UseIIS>True</UseIIS> node to false. This way the project will load and you will be able reconfigure wherever necesary
Hope this helps!
Rinze