I am definitely late in the game, but I decided to upgrade to FreeTextBox v3.0.6 on a new project.
In the past, all images, javascript, and XML files used with FreeTextBox were stored as external files on the web server. It wasn't a pain to manage them by any means, but it is absolutely delightful that v3.0 embeds them as resources because FreeTextBox deployment is an absolute SNAP!
In ASP.NET 1.1, you only have to add a handler to your web.config. Apparently in ASP.NET 2.0 you don't have to do anything.
From the installation guide:
FreeTextBox is just getting better and better!
