For those of you who may have missed this one, SP1 for Visual Studio and Framework 3.5 are now out of Beta, you can find the official downloads using the following links.
Microsoft Visual Studio 2008 Service Pack 1 (Installer)
Microsoft .NET Framework 3.5 Service Pack 1
Each update has a number of enhancements, in fact there has been alot of conversation over how service packs becoming more like application milestones rather than bug fixes and small enhancements as the used to be.
For those of you who would like an insight into what these service packs contain you can download .NET 3.5 Enhancements Training Kit created by the Visual Studio & .NET Framework evangelism team which details these new features using labs, slides decks and demos.
.NET 3.5 Enhancements Training Kit
(blog inspired by Jonathan Carter)