even Microsoft is using it for running www.asp.net
and apparently some 110 000 other web sites
podcast Building Umbraco with Benjamin Howarth @ .NET Rocks
Umbraco - Introducing ContentService aka the v6 API
There are similar alternatives
Orchard, newer, based on ASP.NET MVC
also free and related to Microsoft people.
How Orchard works - Orchard Documentation
Oldest, based on WebForms
.NET CMS Software for Content Management | DNN Softwarecontent management system - DotNetNuke, Umbraco or Orchard - Stack Overflow