You can check for a network connection in .NET 2.0 using GetIsNetworkAvailable()
:
System.Net.NetworkInformation.NetworkInterface.GetIsNetworkAvailable()
To monitor changes in IP address or changes in network availability use the events from the NetworkChange class:
System.Net.NetworkInformation.NetworkChange.NetworkAvailabilityChanged
System.Net.NetworkInformation.NetworkChange.NetworkAddressChanged