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If you have installed version 3.5_1747
_standard.exe, you do not need to apply a patch(SP1). The patch should be applied if you want to upgrade version 3.5_1714
I believe lacking of Framework 2.0 could not be a problem. You can have 2.0 and 3.5 SP1( the last one) on the same machine. The framework packages could be downloaded form the official Microsoft website (www.microsoft.com)
If you are working through Sitefinity's User Interface, there are steps that should be followed, and you can specify what kind of database you want to use.( SQL Express, SQL Server 2005 and so on.)
To run the application you need to have SQL server (lets say 2005), IIS 5.1/6/7 +, Microsoft .NET Framework 2.0 or 3.5. More information you can gather from our Installation Guide
Platforms as Server 2008 and SQL 2008 will be announced as officially supported in the next release and our documentation will be updated.
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