I'm trying to use the software I just received at MS Herioes Lanch Event. Received VS 2008 standard and SQL Server 2008 Katmai. Just trying to connect to SQL Server 2008 and get the following.

Error: This server version is not supported. Only servers up to Microsoft SQL Server 2005 are supported

I see there is a CPL for VS 2008 professional regarding this, but does this apply to standard version as well? Just seems a bit strange.

VS 2008 shipped well before SQL 2008, it is not forward compatible (i.e. it is not tested with products that were yet to be shipped). When final SQL 2008 ships, VS will be updated with appropriate support.