Microsoft’s mea cupla for screwing up the web project model with the Web Site Project type has been released. We’ve been using it here at Mimeo ever since we started our 2.0/2005 migration and had great success wth it even in the beta stages.
The differences between RC1 and Release are surprisingly big, but I guess they did enough internal testing to feel it was solid enough and pushed it out the door. Read all about it on Scott Guthrie’s blog and/or download it from here. Big thanks to the team that worked on getting this out there!
Oh and make sure to check out Web Deployment Projects too! It works for both project Web Site projects as well as Web Application projects.