Both NLog 1.0 and 2.0 work with Visual Studio 2010. In case of 1.0 you need to use the assembly for .NET 2.0 (unfortunately, your application must be compiled into the .NET Framework 4 Extended Profile), NLog 2.0 does not use this restriction and also allow client profile applications.
For new projects, I would recommend NLog 2.0. Currently, it is quite stable and passes all unit tests at this point.
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