jQuery, JSON, and ASMX 2.0 Services

A few weeks ago, I had a project that was grounded in the .Net Framework v2.0 and Visual Studio 2005. The requirements were very focused on usability and speed so AJAX and jQuery were high on my list to use. Through the project, I learned that there isn't a large amount of information in one place that tells you how to setup a ASP.Net solution that uses jQuery and ASMX services to effectively transmit json data back and forth from the client. Because of this, I'll attempt to fill this voice since there are still many developers and companies out there that have not been able to upgrade to Visual Studio 2008.