Theres just a ton of new features in SP1... so lets just jump to the links (from Charlies blog post) :)
VS 2008 Service Pack 1:
VS 2008 Express Editions with Service Pack 1:
VS Team System 2008 Team Foundation SP 1:
.NET Framework 3.5 Service Pack 1
Team Foundation Server
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The Visual Studio ISO contains the .NET 3.5 SP1 installer, so you don't have to download it separately.
Lester, here is a complete list of .NET Fx 3.5 SP1 changes compare to .NET Fx 3.5.
1.393 new public methods,
79 new public types,
6.384 methods where code was changed
As you might have heard, .NET Framework 3.5 SP1 and Visual Studio 2008 SP1 are out today! There are a