There is an official Microsoft answer to this question at the following knowledge base article:
Unfortunately, it doesn't appear to work, because the mscorlib.dll version in the 2.0 directory has a 2.0 version, and there is no mscorlib.dll version in either the 3.0 or 3.5 directories even though 3.5 SP1 is installed ... why would the official Microsoft answer be so misinformed?