XmlSerializer changes in .NET 3.5 SP1

[XmlRoot("foo")]
public class Foo
{
    static void Main()
    {
        XmlSerializer serializer = new XmlSerializer(typeof(Foo));

        string xml = @"<foo name='ack' />";
        using (StringReader sr = new StringReader(xml))
        {
            Foo foo = serializer.Deserialize(sr) as Foo;
        }
    }

    [XmlAttribute("name")]
    public string Name { get; set; }

    public Foo Bar { get; private set; }
}

<system.diagnostics>
  <switches>
    <add name="XmlSerialization.Compilation" value="1" />
  </switches>
</system.diagnostics>
<system.xml.serialization>
  <xmlSerializer tempFilesLocation="c:\foo"/>
</system.xml.serialization>

<system.xml.serialization>
  <xmlSerializer tempFilesLocation="c:\foo"/>
</system.xml.serialization>