If not taking CrystalReoirt.NET components( Viewer) into account, then, yes,
it is most likely your .NET 1.1 app will run fine on a computer with .NET
2.0 only, unless your app uses some 1.1-only features (I do not know what
and how many these features exist, though). I say "most likely", means it is
not 100% guaranteed. To be sure, you have to do your test. If you cannot do
fully test, then ask your user to load .NET 1.1. After all, .NET framework
is designed by running side-by-side.
As for CR components, you must deploy them to the user computers, because it
is not part of .NET framework.