Service Pack 1 for Visual Studio 2008 and .NET Framework 3.5 is out now. We had a chance to work with Microsoft on some of the issues and suggestions that many of you have recommend. Microsoft has listened and come out with a good service pack. It addresses many of the issues as well as include fixes, new features, and improvements:
[Update thanks to Glenn and Heather:] If you have the beta (and some other KB hotfixes) installed, then run the Visual Studio 2008 Service Pack Preparation Tool FIRST.
Click the button to download Service Pack 1 for Visual Studio 2008 and .NET Framework 3.5:

PS - After installation, leave a comment here on how you like the new improvements, features and fixes.