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Here's a link to sample code by Chris Szurgot for creating an application that can be placed on the system tray. It's become much more common to have things on the system tray recently, and this code allows you to implement this feature using .NET 2.0.
I haven't had a chance to use the code yet, but there's a project that I'm playing with where this code would be useful, so I hope to try it out soon.