This is horrible, because we have the same terms used in conflicting
ways in IIS and SharePoint. So I apologise in advance for the
following!
I believe it could run under the same host URL in the same IIS web
site (= SharePoint "web application"). It would need to be in a
virtual directory that was configured in IIS as an application (i.e.
it has the cog wheel icon).
Jean, if you install .NET 2.0 on the server, you get the option for
each IIS application to set the version of .NET that is used (it's
an extra tab in the properties dialog). You would need to make sure
that the top level site and all of SPS every virtual directory with
a cog wheel in IIS) was still set to .NET 1.1. Just installing .NET
2.0 should not change existing apps, but best to check!
You could add your app as an application under the same IIS web
site, creating it in IIS in a path that is excluded in the SPS admin
screen. In IIS you configure that as an application (there is a
button to create an application in the properties dialog for a
virtual directory), make sure it is in a different app pool than
SharePoint, and configure it for .NET 2.0 in IIS (i.e. you don't
need to make code changes).
I understand Paul's issue with installing .NET 2.0 on an SPS 2003
server (we lived through that pain) - even though you configure an
IIS application for .NET 1.1, it will still sometimes find .NET 2.0
components and cause an error. There is a workaround where you add a
line to the web.config for that application that forces it to never
use anything but .NET 1.1 components.
Certainly, this is something you would want to test in a non-
production environment.