Yes, I mean DataGrid. .NET 2.0 wasn't released until October 2005 so I think your remembrance of dates is a little bit off (understandable: it's now a long time ago).
In any case that didn't really matter. In mid-2004, when I started, the company was still targeting .NET 1.0 for all apps because it meant we could guarantee customers would have that runtime installed on their machines without the need for another dependency. The business model was download -> try -> buy so we wanted as little friction as possible and having a newer version of .NET that might require another download and install wasn't worth the dropout rate we'd experience.
That being said, .NET 1.0 also meant we were using Visual Studio.NET 2002 which was... incredibly painful to work with. I'd come from the world of IntelliJ IDEA which had all manner of code navigation, inspection, refactoring, and testing functionality built in. Not to mention Java already had generics and a much better and more comprehensive framework class library and more mature OSS scene covering whatever was missing from that. .NET 1.0 and VS2002 had none of it and, I forget, was it that VS2002 had no extension model or was it just that ReSharper didn't support it? Either way it felt like stepping back into the mid 1990s and I wasn't happy.
Eventually, sometime in summer or autumn of 2005, I managed to persuade leadership that at least allowing us to use .NET 1.1 and Visual Studio.NET 2003 would be a good idea, and would enable us to use ReSharper, which at least brought us on par with IntelliJ IDEA circa 2003 or so. I can't remember but it might have been that .NET 1.1 had been rolled out over Windows Update or enough service packs for Windows 2000 or Windows XP that we deemed the likely loss of purchases to be negligible.
Our first products developed with .NET 2.0 we didn't start working on until the back half of 2006 and this was really only because we were developing products that plugged in to SQL Server Management Studio which, again IIRC (long time ago), was based on the Visual Studio 2005 shell and required .NET 2.0.
We were always lagging on .NET versions because we wanted to make sure someone could just download, install, and run our products without needing to do anything else.