DotNetNuke V3.2 and 4.0 have just been released today!

These releases bridge the compatibility gap between ASP.NET 1.1 and ASP.NET 2.0 and offer a number of powerful new application features.

You can read further details here:
http://www.dotnetnuke.com/Default.a...?tabid=886

and download the latest releases from here:
http://www.dotnetnuke.com/tabid/125...fault.aspx

- I've done some preliminary tests upgrading a localhost install of V3.1 to 3.2 and it installed without any problems.