Convert to Website moves all of your control declarations from the main page class to a secondary file (yourpage.aspx.designer.cs).
It does this by using a partial class. That is, the same class for your page, but split into two seperate files.
This allows the VS2k5 (and VS2k8) designer to generate code for your pages without dumping generated code spaghetti into the main class file.
You don't need to do this step to build the project, but if you continue to maintain the project you will want too.
EDIT:
Hey look, MSDN backs me up:
To convert the code to use the partial-class model
- Make sure the code compiles without errors.
- In Solution Explorer, right-click the project name and click Convert to Web Application. This command iterates through each page and user control in the project. It moves all control declarations to a .designer.cs or designer.vb file. It also adds event handler declarations to the server-control markup in the .aspx and .ascx files.
- When the process has finished, check the Task List window to see whether any conversion errors are reported.
- If the Task List displays errors, right-click the relevant page in Solution Explorer and select View Code and View Code Gen File to examine the code and fix problems.
- Recompile the project to make sure that it compiles without errors.