I recently helped migrate a ton of code from Visual Studio 2005 to 2008, and .NET 2.0 to 3.5. Most of it went very smoothly; it touches every .sln, .csproj, and .Designer.cs file, and puts a bunch of junk in Web.Configs, but rarely encountered errors. One thing I didn't expect was that even for a project running in VS 2008 but targeting .NET Framework 2.0, it will still use the v3.5 C# compiler. As such, it does behave a bit differently than the 2.0 compiler, even when targeting the 2.0 Framework.
I bought my current PC almost three years ago. I've had my own PC for 15 years or so, and, aside from my first desktop and a laptop I only use when traveling, that was the only time I've bought a whole PC, rather than buying parts and assembling my own (a Frankenputer as former coworkers affectionately referred to them). Like many of my colleagues who work in Microsoft technologies, I looked into buying a Dell, and they had a fine deal, and more importantly, they had finally started selling AMD processors, which I can proudly say without qualification is the only CPU in any computer I've owned. I configured one with a dual core, 64-bit processor, and all sorts of new technologies I'd never heard of but were (and appear to still be) the latest and the greatest. ("What's SATA? We use PCI for video again?" I asked myself.)
One problem I've had in Team Foundation Server since Visual Studio 2005 and still in VS 2008 is when items are deleted by someone else, they still show up in Source Control Explorer, with a gray folder with a red X icon, even with "Show deleted items in the Source Control Explorer" unchecked in VS's Options dialog. Sometimes getting latest of the parent clears things up, but other times it doesn't, even with Get Specific Version with both Overwrite boxes checked to force a get. In this case, the only option I've found is to delete my workspace and recreate it, which means checking in everything beforehand, and getting latest of my working branches afterwards. It's a pain, but as specified here and approved by a Microsoft employee, that may be your only option until it's fixed--fingers crossed for VS 2010. (We won't get into the other things for which my fingers have been crossed since I first used TFS in 2005, things that VSS did just fine, such as rollback, check in changes and keep checked out, and search.)