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It a little easier for a C# programmer to program in VB.NET than vice-versa because of this. Otherwise, as said above, it is all syntax. There are only about half a dozen things you can do in one language and not the other.
I would argue with him that there is no mechanism (1.1) to inline documentation so that you can quickly gen html doc pages for your code. That's the biggest downside for me. VB.NET generates the shells for the classes but that's it. I don't know about 2.0...haven't looked into it.