well this is the requirements for .NET 2.0:
Supported Operating Systems: Windows 2000 Service Pack 3; Windows 98; Windows 98 Second Edition; Windows ME; Windows Server 2003; Windows XP Service Pack 2
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it states it requires Windows XP SP2. So it's a tricky one, I would suggest trying it out on 1 machine/test machine and see how it goes, then deploy it on afterwards. however I would strongly suggest upgrading to SP2
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