This week we released the Visual Studio codename "Orcas" March 2007 CTP and this is the first time that features from .NET Framework 3.5 have been included. I've already seen this on Matt Winklers blog and Somasegars blog. I would recommend you get the Team Suite-Only VPC to review the new features in .NET Framework 3.5.
Brief on .NET Framework 3.5
Many ISV’s, enterprises and even our own Microsoft product teams are successfully building on the new features WF, WCF, WPF and CardSpace in the .NET Framework 3.0. Microsoft plans to continue to invest in the .NET Framework developer platform and in support of existing users the .NET Framework 3.5 has no serious breaking changes so existing applications built for .NET Framework 2.0 or .NET Framework 3.0 will continue to execute. The .NET Framework 3.5 adds new features in several major technology areas.
.NET Framework 3.5 will ship with Visual Studio codename ”Orcas” and will be available for separate download from MSDN.
Just The Server Side (WF and WCF)
Here's some detail of the new things to look for from WF and WCF.
Matt Winkler already has a good run down on several of these these blogged.