I have a correction. I determined that the error throws in VS 2008 too but the issue is not running the site in the debugger - at least not directly. The error only gets thrown if I make a reference to the FormView.Controls collection in the debugger. This can be either in the watch windows or in the mouse-over menus when I hover over the FormView object in the code-behind. So if I add a watch to, say, FormView1.Controls.Count or FormView1.FindControl("TextBox1") or FormView1.Controls(0), then this exception will be thrown and crash my page.
If I remove these references from the debugger, the page will run successfully in both 2005 and 2008.
It almost seems like a .NET "Don't Ask, Don't Tell" policy. As long as I dont ask my FormView about it's controls, everything is cool. As soon as I ask, everything hits the fan. That would be fine and all, except there's another bug on my page that I need to fix!!!!!