Not sure if this has been mentioned here - but Borland has a FREE tool that can be used to learn C#. You can create C# Windows forms and ASP.NET web forms. I use VS.NET 2003 - but I downloaded this tool to give it a look and I'd recommend it to anyone who wants to give C# a test run:

http://www.borland.com/products/downloads/download_csharpbuilder.html