Why is it compiling with 1.1?

[Fred Flintstone]

I have an asp.net application on a W2003 R2 server. I load VS.Net
2005, on the server and tell it to build the project. I see this
message in the build window:

Building directory
'/test/_vti_bin/_vti_adm/aspnet_client/system_web/1_1_4322/'.

The website properties specify that the site is using ASP.Net 2.0.
Why is VS building a 1.1 folder?

Thanks!