Visual Studio 2008, Beta 2...Installed!
I'm not generally averse to trying out beta, or even alpha software. On something as big as VS I am. With beta 1 I went the virtual machine route, which worked great. But for beta 2 I decided to actually install the thing on my dev machine at home. I was a little worried, but here in the next few months I'm due for a rebuild anyway.
I did a full install minus Crystal Reports (because I firmly believe that Satan invented and continues to develop it) and Sql Server 2005 Express (already have that). The install took about 40 minutes, with no issues.
I upgraded a WPF project with no negative ramifications. Did the same with one web project. All seems to be working well. I also made your my VS 2005 projects still worked, and they do.
So, in my experience, everything is peachy.