You could try running the .NET framework install independent of the SQL install. You can find the install for the .NET framework on the CD at \redist\2.0\dotnetfx.exe

I would be extremely careful. I have not tested this with the .NET Framework 1.1 but there were some issues with v 1.0 of the framework. My one data point comes...

I don't have a SQL Server 7.0 handy at the moment but I believe that this works. You can use xp_sqlagent_proxy_account N'get' to determine what user the proxy account is...

You can use xp_sqlagent_proxy_account to set the account that xp_cmdshell will execute under. You can use this procedure to get or set the account information. When setting the account information,...