MSDN has posted a good article on Refactoring C# Code Using Visual Studio 2005 that introduces the concept of refactoring and covers many of the techniques that are supported in the new IDE. This is a perfect time to plug Martin Fowler’s excellent book on the subject, Refactoring: Improving the Design of Existing Code. If you’d like to dive a little deeper, it’s worth adding this classic text to your library.
For those of you who can't use VS.NET 2005 for whatever reason, I've had good success with Xtreme Simplicity's C# Refactory tool.
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