http://bugs.winehq.org/show_bug.cgi?id=10019
--- Comment #10 from Austin English austinenglish@gmail.com 2009-09-15 15:19:36 --- (In reply to comment #9)
I can confirm the Net2.0 installation problems with this demo. It fails for me, exactly as it does for Luke when the windows version is set to XP.
And, like Luke, it seems to get far enough that when you run the installer a second time it will start at the step beyond .Net installation.
I tested this using the brand-new Wine 1.1.17.
Does installing dotnet20 with winetricks first help?