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Visual Studio 2005 generates XHTML when used in designer mode.
It also has support for validating you HTML source code against strict W3C standards such as XHTML 1.0 Transitional or XHTML 1.0 strict non Transitional standards.
Whilst Visual Studio 2003 produced well formed Transitional HTML it was not the correct case that XHTML requires for it to be valid
If your markup fails to be validated it is underlined in red and an explanation is provided giving the reason for failure.
Form within VS2005 designer IDE Select Tools – Options – HTML – Validation and choose from the Validation target standards that appear in the Target drop-down list.