Upgrade this solution to VS2010.
I'm not ready to update it to Framework 4.0, because
(a) I don't see the huge benefit. A build based on .NET 2.0 will work in .NET 4.0 app.
(b) there is a big downside: all of the older apps will not be able to use the newer library.
So, I will continue to target .NET 2.0, but the source project will be updated to VS2010.
Concurrent with this I will upgrade the setup projects to WIX // .wixproj.
For the workitem covering that, see