Microsoft XML Team has announced the LINQ to XSD Preview Alpha 0.2 for Visual Studio 2008.
The LINQ to XSD preview illustrates our initial thinking on a strongly-typed programming experience over LINQ to XML. Instead of working with untyped XML trees, LINQ to XSD allows you to program in terms of strongly-typed classes, generated based on an XSD schema. The LINQ to XSD project is still incubation, but we are looking at ways to incorporate its functionality into future Visual Studio and .NET Framework releases.
You can download it from here.
Read the full announcement here Microsoft XML Team's WebLog