MattWard:I believe if you edit the .resources file in SharpDevelop2 it becomes .NET 2.0 specific. I am not sure if Al.exe does anything with it apart from maybe embedding it into your assembly. I tried something similar when upgrading a WinForms app from SharpDevelop 1.1, as long as I did not modify the form, which indirectly altered the .resources, then the app would compile and run under .NET 1.1, but as soon as the form was edited or the .resources modified then the resources became.NET 2.0 specific. You can either edit the .resources in SharpDevelop 1.1 or switch to .resx files and use MSBee. I suggest you test whether MSBee handles your project properly with a small test, it should work.
I've had the same problem here with some .net 1.0 projects. I couldn't find a way to get #develop to generate 1.1 resources properly so I switched to using Nant to build my projects.
Also another problem I had is when using a web reference. #develop generates 2.0 specific code (partial classes and some attributes) so I've been using wsdl manually there too.
In general #develop on it's own is not a good solution when u try to use resource files and/or web references on a 1.1 project (also the intelli sense always suggests 2.0 stuff so u sometimes get auto completion on properties not existing in 1.1 yet - or being sealed, private,...)