Hi All,
I had a heck of a time finding all the information I needed to complete this task, so I thought I'd put it all together in one place, in case any of you are ever tasked (like I was) to implement TFS 2008.
I’ve figured out how to get Visual Studio 2005 Professional to connect to and create Team Projects on Team Foundation Server 2008. There are a few patches to install, but it works!
1. Install Team Explorer 2005
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This adds the basic functionality of the Team Explorer to the vs 2005 environment. You get the ability to open and create Team Projects.
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However, attempting to create a Team Project on a TFS 2008 server, you get the following error:

This is due to the fact that you’re trying to create a workspace on a WSS 3.0 site instead of a WSS 2.0 site. There is a patch available. But in order to install the patch, you have to re-apply Visual Studio 2005 SP1.
2. Install (or re-apply) Visual Studio 2005 SP1
- Note: there are two components to the service pack, which will run separately. The first is the general VS 2005 update. Then a second wizard runs to update the Team Explorer.
3. Install hotfix VS80sp1-KB932544-X86-ENU.exe