<p>Is it possible to use WSE 2.0 SP2 under VS 2008?</p>

<p>I realise that the add-in (that generates the proxy classes/configuration) is not compatible but there are work-arounds to this (copying over the files from a VS 2003 solution). Our web services are relatively static so would not be making too many changes anwyay.</p>

<p>We may at a future date move to WCF but taking baby-steps at the moment and want to get our existing services running under all the .NET 3.5 goodness.</p>

I have been able to use WSE2 under VS2005/.NET 2.0 with no problems, but I dont know specifically about 2008. I needed Dime attachments (java web service - ugh.. what a headache) which are only in WSE2.
To get the functionality in VS, I actually installed WSE3 and then just changed the dll referenced in the application to the WebServices2 file and all of the Imports (VB - using c#) statements. After that, it worked like a charm.