I wrote before that I would validate fixes for the bugs I found previously in VS 2005. Unfortunately, many had not been fixed in the Beta 2 release. The two most annoying ones are documented in [1] and [2]. They are particularly annoying because they deal with cryptography. As such, any application that relies on one of these cryptography features (a major project I am working on relies on both) won't run properly.
Now, the good news is that in the June 2005 Community Technology Preview, many bugs are fixed, including the PasswordDeriveBytes one. The memory leak in the VB.NET background compiler [3] also seems to be gone. These fixes result in a much more workable environment. I will be trying (again) to port the project to VS 2005. Hopefully for good this time.
[1]: PasswordDeriveBytes returns different results than .NET 1.1
[2]: RSACryptoServiceProvider.SignHash fails with "Keyset does not exist"
[3]: Memory Leak in VS 2005 Beta 2 (possibly related to vb background compiler)