.Net Micro Framework for Embedded Devices

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You can now use the .Net Micro Framework to  develop a range of applications, such as home automation systems, industrial sensors, retail displays and health care monitors on smaller, less expensive, and more resource-constrained devices.
The .NET Micro Framework SDK integrates into the Visual Studio environment, supporting C# development, with features like on-device debugging, object browsing, IntelliSense, and integrated build and deployment.
You also can use your customized emulator and test your code on the virtual hardware.

To develop for Microsoft .NET Micro Framework 2.0, you need:
1. Windows XP, Windows Vista, or Windows Server 2003
2. Microsoft Visual Studio 2005 Standard Edition or greater

Watch "An Introduction to .Net Micro Framework" webcast here.
You can download the .NET Micro Framework Software Development Kit here to develop for embedded devices.