Hey marcos,
The answer is YES: the IE web controls won't work with 1.1 Luckily, there's a workaround:
When you unzip the IE webcontrols, there's a batch file that unzips with it. what you need to do is open that up in notepad or some other text editor, and make sure that this line is in there:
C:\WINDOWS\Microsoft.NET\Framework\v1.0.3705\csc.exe
v1.0.3705 is the 1.0 framework (and on my machine, when I installed 1.1, it still kept 1.0...very nice of it). Once you run the batch file with it pointing to the 1.0 framework directory, they *should* work again. I performed this and they now work fine.
hth
D'Arcy