This is a very good overview of how to setup/accomplish development on WSS 3.0.  I will be posting a series of Workflow for SharePoint with Visual Studio (Developer Topic) within the next week or so and I often get questions about how to setup my environment to do SharePoint Development.  This excerpt from Patrick Tisseghem is a nice start.

Here's his summary:

Summary: Learn the skills you need to develop for Windows SharePoint Services 3.0, about the differences from traditional ASP.NET development, about the required development environment, and the steps to build a Windows SharePoint Services solution with Visual Studio 2005 Extensions for Windows SharePoint Services 3.0. This article is part 1 of 2. (33 printed pages)

Here's the link for Part 1:

Here's the link for Part 2:

~ Robert Shelton