GeForce 8500 GT and CUDA CUDA compatability

Does the GeForce 8500 GT support CUDA V1.1?
Is there anything I should know when using GeForce 8500 with CUDA? Less threads in a block? Less performance? Anything else?

See page 73 of the programming guide (version 1.1):
The 8500GT has compute capability 1.1 and 2 multiprocessors.

The amount of threads per block is the same for all hardware: 512.

Because you have less multiprocessors than for example a 8800GTS, you can handle less blocks at a time. In theory, however, you can have more than 2 blocks running (16 active blocks in your case).