So there have been a few issues we have seen with .NET 2.0 when it is running on large 64-bit machines that have a lot of memory. This is commonly seen if the machine in question has at least 4GB of RAM per CPU. So like 32 GB of RAM with 8 processors.
There are a few issues that have been addressed around this situation. There has been a hotfix to address one issue: http://support.microsoft.com/?id=938276
But now we have released SP1 and that has even more fixes that address this situation. To get more info on where to get SP1, check out my previous posting on this: .NET Framework 2.0 SP1 has released
Microsoft, .NET, Memeory, Memory Issue, Performance, Troubleshooting, Knowledgebase