I do not know why Microsoft did not try to make .Net framework 3.5 installed on as many computers as possible through Windows Update or a service pack.
But if you do not want your Vista users to download 3.5, you can target 2.0 on VS2008, 2.0 is built into Vista. As for LINQ, just find an alternative implementation, try LinqBridge . Everything else (derived variables, automatic getter activators, initializers, property initializers, lambda - this is only the magic of the compiler, independent of 3.5
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