In case you missed we just shipped both SP1 for VS 2008 and SP1 for the .Net Framework 3.5: http://msdn.microsoft.com/en-us/vstudio/products/cc533447.aspx
Time to update your development machines.
Any chance of getting a 64 bit version of VseWss any time soon?
Not yet and we recommend a 32 bit development environment as outlined on the download page here:
http://www.microsoft.com/downloads/details.aspx?familyid=7BF65B28-06E2-4E87-9BAD-086E32185E68&displaylang=en