Net Framework question

I know this isn't vb.net question, but ...
I have on my machine Microsoft .NET Framework Version:1.0.3705.0 together with VS.Net, my question is: can I install only new framework (I think the newest version is 1.1) and continue work in VS.net?

regards

Dont think so, but I believe an upgrade wil be available to download for free to make it work or a cd set for a few bucks from what I have heared.