@komradekatz, your solution below from MSDN for convenience for others looking into this. I do not like this solution because it uses the user agent to determine the version. This is not viable for what I need (I am writing a class library that needs to know whether .NET 3.5 is installed). I also question how reliable this solution may prove to be.
<%@ Page Language="C#" %>
<!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd">
<HTML>
  <HEAD>
    <TITLE>Test for the .NET Framework 3.5</TITLE>
    <META HTTP-EQUIV="Content-Type" CONTENT="text/html; charset=utf-8" />
    <SCRIPT LANGUAGE="JavaScript">
    <!--
    var dotNETRuntimeVersion = "3.5.0.0";
    function window::onload()
    {
      if (HasRuntimeVersion(dotNETRuntimeVersion))
      {
        result.innerText = 
          "This machine has the correct version of the .NET Framework 3.5."
      } 
      else
      {
        result.innerText = 
          "This machine does not have the correct version of the .NET Framework 3.5." +
          " The required version is v" + dotNETRuntimeVersion + ".";
      }
      result.innerText += "\n\nThis machine's userAgent string is: " + 
        navigator.userAgent + ".";
    }
    //
    // Retrieve the version from the user agent string and 
    // compare with the specified version.
    //
    function HasRuntimeVersion(versionToCheck)
    {
      var userAgentString = 
        navigator.userAgent.match(/.NET CLR [0-9.]+/g);
      if (userAgentString != null)
      {
        var i;
        for (i = 0; i < userAgentString.length; ++i)
        {
          if (CompareVersions(GetVersion(versionToCheck), 
            GetVersion(userAgentString[i])) <= 0)
            return true;
        }
      }
      return false;
    }
    //
    // Extract the numeric part of the version string.
    //
    function GetVersion(versionString)
    {
      var numericString = 
        versionString.match(/([0-9]+)\.([0-9]+)\.([0-9]+)/i);
      return numericString.slice(1);
    }
    //
    // Compare the 2 version strings by converting them to numeric format.
    //
    function CompareVersions(version1, version2)
    {
      for (i = 0; i < version1.length; ++i)
      {
        var number1 = new Number(version1[i]);
        var number2 = new Number(version2[i]);
        if (number1 < number2)
          return -1;
        if (number1 > number2)
          return 1;
      }
      return 0;
    }
    -->
    </SCRIPT>
  </HEAD>
  <BODY>
    <div id="result" />
  </BODY>
</HTML>
On my machine this outputs:
  This machine has the correct version
  of the .NET Framework 3.5.
  
  This machine's userAgent string is:
  Mozilla/4.0 (compatible; MSIE 7.0;
  Windows NT 6.0; SLCC1; .NET CLR
  2.0.50727; .NET CLR 3.0.04506; InfoPath.2; .NET CLR 1.1.4322; .NET
  CLR 3.5.21022; Zune 2.5).