Visual Studio 2008 (and the .NET Framework 3.5) is set to release to manufacturing in a few weeks (November timeframe). I've been working with it for about 6 months myself, and once you get pass the BETA "issues" it is a nice upgrade over Visual Studio 2005 in a variety of areas.
I specifically like these news features:
Click here to see the Full Video Clips: http://msdn2.microsoft.com/en-us/vstudio/bb655906.aspx
Here are the "Quick Clips"
Part 1: Introduction
Part 2 – Split View and CSS
Part 3 - Nested Master Pages
Part 4 – LINQ to SQL Overview
Part 5 – LINQ to SQL Dynamically Generate HTML
Part 6- LINQ Data Validation