Great news indeed.

Download now at: http://msdn.microsoft.com/en-us/vstudio/cc533448.aspx

Visual Studio 2008 and the .NET Framework 3.5 enable developers to rapidly create connected applications that deliver high quality and rich user experiences. Visual Studio 2008 enables organizations of every size to rapidly create secure, manageable, and reliable applications that are optimized for Windows Vista, SQL Server, the Microsoft 2007 Office system and the Web.

Microsoft .NET Framework 3.5 Service Pack 1

Microsoft .NET Framework 3.5 Service Pack 1 is a full cumulative update that contains many new features building incrementally upon .NET Framework 2.0, 3.0, 3.5, and includes cumulative servicing updates to the .NET Framework 2.0 and .NET Framework 3.0 subcomponents.

More news are coming a bit later today.