Whether .net supports serial communication? If YES then what I've to do? I'm using MS Visual Studio 2003 with Framework 1.1. What will be the maximum baud rate that I can set?

Yes it does support Serial Port Communication. You can use the System.IO.Ports.

The namespace and SerialPort class, is part of .NET 2.0 and Visual Studio 2005. It is not included in .NET 1.x (and Visual Studio 2003). Even if you have .NET 2.0 or Visual Studio 2005 installed, you can not access the class from within Visual Studio 2003.

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