Disclaimer The opinions expressed herein are my own personal opinions and do not represent my employer's view in anyway.
Old news by now, but SP1 is out with all sorts of glorious new features, except a good installation path. If you have several machines to update with both VS2008 SP1 and .NET 3.5 SP1 (e.g., a team), you'll want the ISO file, which can be tricky to find. Direct link to combined installer .iso. And, I use the awesome freeware ImgBurn to create the disks for my team.
I've seen a couple reports that the installation takes 3+ hours, but all told installation for me went 45 minutes. I cheated, and downloaded the .NET 3.5 SP1 first (full package at http://download.microsoft.com/download/2/0/e/20e90413-712f-438c-988e-fdaa79a8ac3d/dotnetfx35.exe), installed that, then ran the combo installer.
Greg has a great list of VS2008 things to download (including the MSDN update and training pack) at http://coolthingoftheday.blogspot.com/2008/08/visual-studio-2008-net-35-sp1-etc.html.
As always, make sure to remove any previous betas of the SP (both .NET and VS) you have installed. I had the SP beta installed, and got rid of it from Add/Remove programs before I installed anything. If you have any hotfixes installed, you need to remove those as well. This time, there's a hotfix removal tool.
Unlike Craig Shoemaker, I was not asked for the original media. I installed the MSDN updates, too, which tool a little over 30 minutes themselves. All told, you're investing a couple hours for a full update.
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