If you have, like me, been regularly checking the MSDN blogs, you must have noticed the dozens of posts on yesterday's release of Visual Studio 2008 Service Pack 1, .NET Framework 3.5 Service Pack 1, and Team Foundation Server Service Pack 1. So, I'm not going to repeat the list of what's new over here, but just point you to the right places. Make sure you download the corresponding version of the Training Kit since it contains updated PowerPoint presentations and sample code for the changes.
Oh, and don't worry, we've updated our entire team to the latest version of Visual Studio (both Developer and Team Suite editions) and upgraded the servers to .NET 3.5 SP1 and have not observed any issue (yet). What's nice to know is that the update of Visual Studio took only half an hour, even though the installer is twice the size of the corresponding service pack for Visual Studio 2005. However, if you did install the beta of this service pack a few months ago, you'll need to run a patch to uninstall any residual pieces of that beta.