It should compile fine in ASP.NET 2.0, however I'm not sure if it's wise to use this application in ASP.NET 2.0. The key advantages of this application are locked to the older ASP.NET architecture. There's no use of the 2.0 Membership features, Master Pages, Web Parts, etc.
The DataGrid isn't even on the toolbar in 2.0 - they want you to use the new GridView instead.
If you already have a website using this architecture, then it will work fine in 2.0. But I don't think I'd start with this architecture if you're looking at using 2.0 soon - you're better off getting a book on 2.0 and designing a new site using those cool features. It takes a *LOT* less code in 2.0, and you get more features for your end-users.
Eric
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