Debug and production using different ASP.NET versions

Question

VS2005 - C# - ASP.NET 2.0
This was actually started under a different thread that has been broken somehow. To summarize, I keep getting a variety parser errors that show the attributes in my web.config file are not recognized. The reason is that my web.config is written in 2.0 and it is running in production as 1.1.

The problem is that IIS is set up as 2.0. The assemblies are version 2.0. The program in debug runs as 2.0. But as soon as I try to run it through localhost, it runs it as 1.1.

How can this be?!