[UPDATE 2/3/08] The final version is now available. 

I know a lot of folks have used web deployment projects (WDP) with Team Build.  The WDP release for VS 2005 does not work with 2008.  The web developer team has just released a Community Technology Preview (CTP) of WDP for VS 2008.  Being a CTP, it's not fully tested.  However, they are looking for feedback before releasing the final version in January of 2008.

Web Deployment Projects (WDP) for Visual Studio 2008 - December 2007 CTP Released

    Based on the feedback from web development community we just released the Customer Technology Preview (CTP) of Web Deployment Projects for Visual Studio 2008... This release of Web Deployment Projects (WDP) has all the features that VS 2005 WDP release has and in addition has few other enhancements which I will call out later in this post...

    We will be releasing the final version of Web Deployment Projects for Visual Studio 2008 in January 2008 after incorporating all the feedback that we receive via this Dec 2007 CTP release… This CTP is a substantial milestone as it will unblock lot of Web Developers, who depended upon WDP to go ahead and use the latest and greatest features of Visual Studio 2008…

    Overview

    Visual Studio 2008 Web Deployment Projects is an add-in to Visual Studio 2008 which provides developers with advanced compilation and deployment options... A Web Deployment project is extensible, enabling web developers to create pre-build and post-build actions...

    Web Deployment Projects does not touch any shipping binaries within VS 2008… WDP neither changes the way Visual Studio 2008 Web Sites & Web Application Projects build nor does it changes the files in the source Web site project in any way... Instead, it takes an existing Web project as input and generate a precompiled Web as an output...

    more...

Related post for VS 2005 users: Team Build and Web Deployment Projects