I recently converted one of my web application to .net 2.0 framework using the documented procedure.
The migration happend with no warnings or errors.
Now a performance test is showing a very steep fall (aroud 60 users) after the migartion. this is contarary to my expectation of an increased performance after migration.
what could be the reason for this
are there some specific places i should look at to improve the performance

Performance degradation while migrating from .net 1.1 to .net 2.0
MSI Setup too complicated
60 users What kind of application is this, web-based
I would suggest using a profiler to find out where the bottleneck is. The Microsoft CLR Profiler is freely downloadable. An introduction to the CLR Profiler can be found here:
http://msdn.microsoft.com/library/default.asp url=/library/en-us/dnpag/html/scalenethowto13.asp