I had the good luck of chit chatting with Pablo Castro at length at VSLive. One of the things he suggested, and I thought was an awesome idea, was to include a slide on the various release dates for all this stuff coming out of MSFT.
Here is that slide to put an end to all confusions.
As you can see, there are a few key points to notice:
1. C# 3.0, LINQ, ADO.NET vNext and the whole sh-bang was never intended to be a part of WinFX - which is now .NET 3.0.
2. .NET 3.0 is really NET 2.0 + some extra stuff. So to develop for .NET 3.0, you will use Visual Studio 2005, with some additional add-ins and binaries you will download and install.
3. Vista and Sharepoint 2007 will be built on .NET 2.0 + .NET 3.0 (which is .NET 2.0+).
In other words, if you haven't already made a move to .NET 2.0, thinking that you will wait and watch for .NET 3.0 before you make that gargantuan move, you are a BLUDY FOOL!!!