In 1.x, every web project had a references and web references item in the solution explorer that i can expand and remove/add/refresh.
They don't have it anymore in 2.x
Where did the references go?
EDIT: I realized what i have is a website and not a web application project
Right click on Project in Solution Explorer -> Property Pages -> References
By default I believe the References Node is hidden in solution explorer. You can select the Project in Solution explorer where you want to see the references and click the show all files option at the top of the Solution Explorer. This will show all the hidden files and folders within a project including but not limited to the References folder.
In .NET 1.x, web development was done using Web Applications. Those were in short compiled to a single assembly by the IDE.
In .NET 2.0, a new project type was introduced - Web Sites. The web sites are not compiled to a single assembly, instead they can be directly deployed to an IIS site or virtual directory.
Any reference you add to an assembly (through the Property pages that Koistya mentioned), are actually copies of the DLL of those assemblies in the BIN folder in the website. Web references, however, are a little different. A web reference is a proxy class which provides code access to an XML service endpoint. In short, it is not a DLL and cannot simply be added in the BIN folder.
When you add a web reference through Visual Studio, a proxy class is automatically generated and added to your project. For web projects, you can generate a web reference through the Website -> Add Web Reference menu. You have to know the URL of the service endpoint.
The result of this wizzard is a discomap and wsdl files, that are put in the App_WebReferences folder of your site, in a directory structure based on the namespace you've chosen in the dialog.
In Visual Studio 2005, Microsoft introduced Web Site "projects". This is a simpler model that does not use a project file like all the other project types do. They got rid of the Web Application Projects we had been using since day 1.
Due to popular outrage, they reinstated Web Application Projects in Visual Studio 2005 SP1.
It's possible that you are looking at a web site, not a Web Application Project. Look in the "project" properties, as "Koistya Navin .NET" says above.
Personally, I recommend Web Applicaton Projects in most cases. I have to admit that there are some cool things about Web Site "projects": it's nice to be able to change your codebehind, save it, and then refresh the browser to see the result of the change. No compilation necessary. I still don't think it was worth the confusion, though.