You can't compile code for a given framework in the IDE built for the other framework.
VS2003 is built on the 1.1 framework.
VS2005 is build on the 2.0 framework.
HOWEVER!
You *could* write code in VS2003 and then compile it using the .net 2.0 command line compilers. There are also 3rd party build tools such as NAnt that have add-in/plugins for VS from which you can compile code. So it's not outside the realm of possibility to use one framework's IDE to write code, and other framework to compile it. Not as convenient, but possible.
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Peter