According to the life cycle provided by Microsoft at:
support.microsoft.com/lifecycle/?LN=en-us&x=6&y=12&p1=1249The .Net Framework version 1.1 will no longer be supported after October 14, 2008, which can be considered the formal “death” date of the first framework. In my opinion, this is a significant date, a mark in the history of .net development. And although it is difficult to find small and medium-sized developing projects on .net 1.1, they still exist and, for sure, there are even more of them in the segment of large projects. For very large partners of Microsoft, there is an extended support program that will last until no less than 2013.
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PS:
Let me remind you that the latest version of the .Net Framework recently became 3.5 sp1.