Hit another issue last night while playing with the latest CTP – VS2005 can’t cope with some of the changes in SS2008. The problem arose while defining an ASP.NET connection string that was pointing to a 2008 instance (while playing with query notifications and cache invalidation, but that’s unrelated) – it failed with a slightly misleading error message from VS that my SQL Server instance had to be SQL Server 2005 Beta 2 or above! Turns out there’s a fix already (which works perfectly) – see http://www.microsoft.com/downloads/details.aspx?FamilyID=e1109aef-1aa2-408d-aa0f-9df094f993bf&displaylang=en. Thanks to Bob Beauchemin for helping me out.
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