As Scott Guthrie notes, an updated version of the Silverlight 1.1 Tools Alpha is now available. If you are moving to the RTM release of Visual Studio 2008 and were previously using the Betas to do Silverlight 1.1 Alpha development, this is what you will need to to support the Silverlight project templates in RTM.
I think with this missing piece, I am finally ready to move my Silverlight development out of my virtual machine... although there is still at least one missing piece - Astoria - and according to this post, it looks like that won't be available until early December.
But what really has me anxious is Scott's comment, "The next public preview of Silverlight will include a ton of new runtime features..." Come on Scott, don't be a tease!!! Please indulge us. :)