I have been playing around with ASP.NET 2 using Visual Web developer 2005 beta, VWD is really awesome. I find making websites on it quite easy, especially when putting in consideration that I am not an ASP.NET expert yet :-)

I tried out the new feature of Master Pages in ASP.NET 2, it was a little confusing at start but I think I got the hang of it now. That's a wonderful feature, saves a lot of effort with the design process, if you haven't played around with Master Pages, I recommend you do.