SharpDevelop2 is for .Net 2 where as SharpDevelop is for 1.0/1.1
Not according to the download page. It says that SharpDevelop 2 was compiled against .NET 2.0 but can also be used to develop .NET 1.1 apps, while SharpDevelop 1.1 was compiled against .NET 1.1 and could create only .NET 1.1 apps.