Yes you can do that something like this will work:
ArrayList ar = new ArrayList();
ArrayList ar2 = new ArrayList();
ar2.Add("foo");
ar.Add(ar2);
ArrayList ar3 = (ArrayList)ar[0];
Response.Write(Convert.ToString(ar3[0]));
foo is wrote to the screen. You could also use a List<T> for this secnario.
hth.
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