Hi Eric,
First, I converted your issue to a Question, since we don't consider this a bug. According to the MS site, VS2008 SP1 Beta and .NET 3.5 SP1 Beta are provided for testing purposes only.
We don't support such beta software, but will surely release a compatible version (if needed) as soon as MS releases those Service Packs officially.
BTW, the issue you found looks like a bug in the beta...
Thanks,
Max
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