Brad Abrams just converted the existing Web Site Starter Kit from the VS 2005 web site to use the new dot Net 3.5 framework, LINQ and Ajax extenders. Here is the full source code for that.
Here are some of the key points from his post:
– VS2008 Can Target .NET Framework 2.0
– Upgrade to ASP.NET 3.5 and Take Advantage of Linq
– Ajax Enabling the Site
– Tricking out the site with the Ajax Control Toolkit
read the whole post here