Overview

Version 1.1 of the Visual Studio 2005 Extensions for Windows SharePoint Services contains the following tools to aid developers in building SharePoint applications:
New to Version 1.1

• Support for "Web Solution Package" editing
  • View and edit all solution content (no more hidden generated content)
  • Create new Features and rename existing ones
  • Reorder elements between Features
  • Check for conflicts with existing Features
  • Change Feature activation order
• Visual Basic support
• List Instance item template
• List Event Handler item template
• File System template (project file deployed to the SharePoint application file system)
• Bug fixes

• Web Part
• Team Site Definition
• Blank Site Definition
• List Definition
• Empty SharePoint Project

• Web Part
• Custom Field
• List Definition (with optional Event Receiver)
• Content Type (with optional Event Receiver)
• Module
• List Instance
• List Event Handler
• Template

• This stand-alone program generates a Site Definition project from an existing SharePoint site. The program enables developers to use the browser and Microsoft Office SharePoint Designer to customize the content of their sites before creating code by using Visual Studio.

http://www.microsoft.com/downloads/details.aspx?FamilyID=3e1dcccd-1cca-433a-bb4d-97b96bf7ab63&displaylang=en

Some more info in the products team blog: http://blogs.msdn.com/sharepoint/archive/2008/02/11/announcing-the-final-release-of-vsewss-1-1-and-the-upcoming-version-1-2.aspx