For the most part, what you would learn in a .NET 1.1 book applies to .NET 2 (and .NET 3.5/4). The one major exception, and the reason I never recommend anybody start with .NET 1.1 now, is generics.
The handling of collections was made dramatically better in .NET 2+. Prior to .NET 2, collections were all not type safe (ie: ArrayList). After .NET 2, we had the ability to use type-safe, generic based collection classes (List<T>, so you can do List<int>, etc).
This dramatically changes how people write code (or should!). I'd strongly recommend starting with a .NET 2+ book to learn today. Learning from a .NET 1.1 book will teach you bad habits, because you'll be learning collections that have almost no purpose in current .NET code.
That being said, .NET 4 is now released, and there's no real reason not to start there, if you can...