Most of the new applications we are starting to build now (well, since the 2.0 Framework went gold actually) at WDG are being built on ASP.NET 2.0. I saw an interesting post on /. about a large team of around 300 devs moving all their 1.1 code to 2.0 and how to best manage this process. In one of the comments, I found this very interesting link to a MSDN article:
http://msdn.microsoft.com/asp.net/default.aspx?pull=/library/en-us/dnbda/html/bdasamppet4.asp
The PetShop example site is a really good way to see how Microsoft plan, build and deploy n-tier apps. I've been interesting in the PetShop application for a few years now as it was the original Java vs .NET sample application. The article is an excellent read for anyone who needs to migrate a bunch of 1.1 code to 2.0, as well as detailing some of the new features and why they chose to use them.
Some older details of the .NET v Java scenarios can be seen here:
http://www.gotdotnet.com/team/compare/
http://www.gotdotnet.com/team/compare/petshop.aspx