I had not used any thing.... I was straight installing a new machine. First
I installed  SQL Server Developer Edition, patched it with SP 3, then
installed IIS, made sure it was running, then installed .NET Framework, ran
the installation programs for the MSDE instance and samples/tutorials,
verified they were working and I could get to all the different samples,
tutorials etc, patched the MSDE instance with the special SP3 for it, then
patched .NET framework  with SP 1. That is the point I was at when I was
going to install  VS.NET and got the windows  Component Update saying I needed
.NET Framework and the other two things.

I read the installation notes for the windows component  upgrade and manually
installed the runtime  files and the Front Page Web extensions client. I
then started install again and verified that the windows component upgrade
only said it needed .NET Framework. Using the information from the read me
I restarted the installation from the command line using the NO_BSLN_CHECK
option. When I got to the screen where it lists the options to install I
unchecked the boxes for the .NET framwork and the .NET sdk  documentation.
From what I can see the install went fine, I was able to start Vs.NET and
select a project type and all.

I can only guess that the VS.NET installer  did not recognize the .NET
framework install becuase it was patched with SP1, thus the versions didnt
match. This would be typical of Microsoft installers :). Anyway, just
wanted to detail what I did in case anyone else ran into the same problem.