orvars.bat is in "C:\Program Files\Microsoft.NET\FrameworkSDK\Bin"
the version from .NET 1.0 is like this (try to change "v1.0.3705" to "v1.1.4322")
Set Path=C:\Program Files\Microsoft.NET\FrameworkSDK\Bin\;C:\WINNT\Microsoft.NET\Framework\v1.0.3705\;C:\Program Files\Microsoft Visual Studio .NET\Vc7\bin\;C:\Program Files\Microsoft Visual Studio .NET\Common7\IDE\;%PATH%
Set LIB=C:\Program Files\Microsoft Visual Studio .NET\Vc7\lib\;"C:\Program Files\Microsoft.NET\FrameworkSDK\Lib\";%LIB%
Set INCLUDE=C:\Program Files\Microsoft Visual Studio .NET\Vc7\include\;"C:\Program Files\Microsoft.NET\FrameworkSDK\include\";%INCLUDE%
Set NetSamplePath=C:\PROGRA~1\MICROS~1.NET\FRAMEW~1\Samples\