I really like what Microsoft has done with the web development capabilities of Visual Studio 2008, they seem so much more mature and refined than in previous versions.

For instance, when you open up a new project in Visual Studio 2008 that has been configured to run under IIS, it now asks you if you would like VS to create the virtual directory for you in IIS.  No need to open up inetmgr and manually type in directory paths and virtual directory names.

Not only that, it creates the virtual directory in the correct place which is source control friendly, i.e. in place, not under some c:\inetpub\wwwroot folder like it used to do with Visual Studio 2003.  Microsoft finally figured out that .NET developers actually use source control.

Additionally you can now apply the settings on a per project basis, not on a per developer basis.  This is very handy when you want to share settings between devs, like when you have tests that are dependant upon web URLs.