New feature in .net 3.5
New Controls
The ListView and DataPager are new controls added along with a new datasource control called the LinqDataSource.
ListView
The ListView control is quiet flexible and contains features of the Gridview, Datagrid, Repeater and similar list controls available in ASP.NET 2.0. It provides the ability to insert, delete, page (using Data Pager), sort and edit data. However one feature of the ListView control that stands apart, is that it gives you a great amount of flexibility over the markup generated. So you have a complete control on how the data is to be displayed. You can now render your data without using the <table> tag. You also get a rich set of templates with the ListView control.
DataPager
DataPager provides paging support to the ListView control. The best advantage is that you need not have to keep it ‘tied' with the control on which the paging is being done. You can keep it anywhere on the page.
DataPager gives you a consistent way of paging with the controls that support it. Currently only ListView supports it as it implements the IPageableItemContainer. However support is likely to be added to other List controls as well.
LINQ and other .NET Framework 3.5 Improvements
With the addition of Language Integrated Query (LINQ) in .NET Framework 3.5, the process of building SQL queries using error-prone string manipulation is a thing of the past. LINQ makes your relational data queries a first-class language construct in C# and Visual Basic, complete with compiler and Intellisense support. For Web applications, the ASP.NET LinqDataSource control allows you to easily use LINQ to filter, order and group data that can then be bound to any of the data visualization controls like the ListView and GridView controls. In addition, all the other improvements to .NET Framework 3.5, including the new HashSet collection, DateTime offset support, diagnostics, garbage collection, better thread lock support, and more, are all available to you in your ASP.NET applications.
WCF Support for RSS, JSON, POX and Partial Trust
With .NET Framework 3.5, Windows Communication Foundation (WCF) now supports building Web services that can be exposed using any number of the Internet standard protocols, such as SOAP, RSS, JSON, POX and more. Whether you are building an AJAX application that uses JSON, providing syndication of your data via RSS, or building a standard SOAP Web service, WCF makes it easy to create your endpoints, and now, with .NET Framework 3.5, supports building Web services in partial-trust situations like a typical shared-hosting environment.
ASP.NET AJAX
In ASP.NET 2.0, ASP.NET AJAX was used as an extension to it. You had to download the extensions and install it. However in ASP.NET 3.5, ASP.NET AJAX is integrated into the .NET Framework, thereby making the process of building cool user interfaces easier and intuitive.
The integration between webparts and the update panel is much smoother. Another noticeable feature is that you can now add ASP.NET AJAX Control Extenders to the toolbox in VS2008. Even though this is an IDE specific feature, however I feel it deserves a mention over here for developers, who had to add extenders using source view earlier. It is also worth noting that Windows Communication Foundation (WCF) now supports JSON along with other standard protocols like SOAP, RSS and POX.
Important Points in ASP.Net
1. ASP.NET 3.5 provides better support to IIS7. IIS7 and ASP.NET 3.5 modules and handlers support unified configuration.
2. You can have multiple versions of ASP.NET on the same machine.
3. For those who are wondering what happened to ASP.NET 3.0, well there isn't anything called ASP.NET 3.0.
4. VS 2002 worked with ASP.NET 1.0, VS 2003 worked with ASP.NET 1.1, and VS 2005 worked with ASP.NET 2.0. However VS 2008 supports multi-targeting, i.e it works with ASP.NET 2.0, and ASP.NET 3.5.