I agree, it's stupid and confusing. If anyone is curious, it's because IIS is looking at the version of the Core CLR which is 2.0. .Net 3.0 and 3.5 sit on top of 2.0. And to make it more confusing, C# 3.0 uses .Net 3.5.

>You are seeing the correct versions. For some stupid reason that someone will try to defend, CLR 3.5 means 2.0.xxx on web servers.