Last year Microsoft released version 3.5 of the .net framework. We began rolling this out at the end of last year. It is now available on all web hosting servers (US and NZ), so you can take advantage of the new features available for both ASP.NET and ASP.NET AJAX.
Since it's not a major release of ASP.NET there is no need for us to configure your web application to use .net 3.5, the new classes and features are simply available to all web applications running under ASP.NET 2.0