How to open a database connection to Microsoft SQL Server 2008 using the Microsoft Visual Studio 2005 design tools

When you try to open a connection with SQL Server 2008 through sever explorer in Visual Studio 2005 you will encounter with this error:
"This server version is not supported. Only servers up to Microsoft SQL Server 2005 are supported"

To fix it, you need to download and run VS80sp1-KB954961-X86-INTL.exe on your system:
Microsoft Visual Studio 2005 Service Pack 1 Update for Microsoft SQL Server 2008 Support
http://www.microsoft.com/downloads/details.aspx?FamilyID=e1109aef-1aa2-408d-aa0f-9df094f993bf&displaylang=en

To get some more info around it, take a look at the following page:
The Visual Studio 2005 CTP lets developers use Visual Studio 2005 together with SQL Server 2008
http://support.microsoft.com/default.aspx/kb/942246

How to open a database connection to Microsoft SQL Server 2008 using the Microsoft Visual Studio 2005 design tools