.NET 3.5 Beta 2 breaks asp.net

The installation of .NET 3.5 beta 2 does not function out of the box with Windows Server 2003.  An error regarding unknown attribute xmlns="" is shown starting on line 67 in the machine level web.config.  Removing the 4-5 xmlns="" from the <add assembly/> lines seems to allow my web app to work but I don't know what the other consequences might be.