Visual Studio Team System is Microsoft's solution for application lifecycle management. ALM helps software teams tremendously to ensure quality, predictability, etc. Microsoft released VSTS 2005 a few years ago and 2008 in November last year. Now development is underway for the next version of Visual Studio Team System codename "Rosario". You can find more information here http://msdn2.microsoft.com/en-us/vstudio/bb936702.aspx and you can even test-drive the latest bits http://blogs.msdn.com/jeffbe/archive/2008/04/11/april-rosario-ctp-now-available.aspx. If you do, please provide feedback through http://connect.microsoft.com/, which is one of the activities we do as part of the Rosario Technical Adoption Program. 

Last month has seen a lot of releases following the launch of Visual Studio 2008 and Team System http://blogs.msdn.com/somasegar/archive/2007/11/19/visual-studio-2008-and-net-framework-3-5-shipped.aspx , http://blogs.msdn.com/jeffbe/archive/2007/11/19/visual-studio-team-system-2008-ships.aspx

The story around VS SDK and Domain Specific Languages toolkit http://blogs.msdn.com/stuart_kent/archive/2007/11/22/what-s-new-for-dsl-tools-in-vs2008-vs2008-sdk.aspx

VSTS Web Access has made access to TFS so much easier for non-technicians http://blogs.msdn.com/bharry/archive/2007/11/30/vsts-web-access-power-tool-for-team-system-2008-released.aspx

The ASP.NET extensions provide a Model-View-Controller framework and VS2008 Silverlight support amongst others http://weblogs.asp.net/scottgu/archive/2007/12/09/asp-net-3-5-extensions-ctp-preview-released.aspx

And finally today the upgraded power tools for Team Foundation Server have been released http://blogs.msdn.com/bharry/archive/2007/12/21/december-07-release-of-the-tfs-power-tools-for-tfs-2008-are-available.aspx

If you are building .NET 2.0 applications, you really should take a look at all of the above.