Visual Studio 2008 by end of November
Somasegar's WebLog : TechEd Developer in Europe. If you are doing WPF, WCF, and/or WF development this is great to have designers that actually work more than 25% of the time (in the case of WPF). The integration of WF & WCF in .NET 3.5 is something that just had to happen.
Even if you are not planning on upgrading to .NET 3.5, I would encourage you to upgrade to Visual Studio 2008 and use the multitargeting options. In fact, the multitargeting is also an about time feature.