IE7 and .net

Just a very basic question regarding IE7 add on development. Can we (i guess we can) create IE addons in .net (C# or VB.net). If yes, can we use .Net Framework 3.0 for this purpose. I hope this should work for client machines having vista them, but not sure whether it will work for client machines having IE7 on Windows XP (or Win XP SP2)


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IE7 and .net