Two good posts by the Web Development Tools team that you should read if you are already working on AJAX 1.0 and want to start using VS 2008:
              1- Upgrading ASP.NET AJAX 1.0 Websites and Web Applications to .NET Framework 3.5
              2- Using VS 2008 to target ASP.NET AJAX 1.0
              Hope this helps,
              Regards
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