It looks like Visual Studio 2008 doesn't allow or support applications written using .NET 1.1. Whereas if you try opening .NET 1.1 in Visual Studio 2008, then it will open the conversion wizard and will convert your .NET 1.1 to .NET 2.0.
Once your application is converted into .NET 2.0 then Visual Studio 2008 will start supporting it. As .NET 2.0 is one of the framework version which Visual Studio 2008 supports.
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