So, I've installed beta 2 of my developer tools of choice; couple of things to note:

READ the readme file, it contains a couple of updates you need to uninstall if you've had .NET 3.5 on your machine before.

I've also found a fix to make Blend work nicely (build etc) with VS2008 in there!

>> http://blogs.msdn.com/expression/archive/2007/05/29/working-with-visual-studio-code-name-orcas-and-expression-blend.aspx

READ Scott's blog: http://weblogs.asp.net/scottgu/archive/2007/07/26/vs-2008-and-net-3-5-beta-2-released.aspx

And don't forget to fix SvcUtil.exe; Microsoft forgot to sign it J Thanks Joval Lowy and Justin Smith!

>> Run Sn.exe –Vr SvcUtil.exe on a command prompt (VS!).

>> On my computer I found SvcUtil in C:\Program Files\Microsoft SDKs\Windows\v6.0A\bin