I have an ASP.NET 3.5 project that I would like to move into Sharepoint.

I have read that the way to do this is to begin by creating a Web Deployment Project.   I have VS 2008, so I downloaded the latest WebDeploymentSetup.msi (signed 1/18/2008) and ran it.  The "About" window in VS tells me that I have VS 2008 Pro version 9.0.30729.1 SP, wih .NET Framework 3.5 SP1, a lot of hotfixes, and the last thing is "Web Deployment Projects 2008 000000" 9.0.21022.    So it seems like it's installed okay.

The instructions say to "tight click on the website project and choosing 'Add Web Deployment Project' option", but I don't see any such option.  When I click on my Solution, I see only "Add".  Under "New Project" I see a variety of things under "Web" like "ASP.NET Web Application", and some things under "Other Project Types > Setup and Deployment" like "Web Setup Project".   But nothing that looks like "Web Deployment".

Can't find it anywhere?!?

You need to start with a Web Site Project, or a Web Application Project (WAP), first. Then right click on project, and choose "Add Web Deployment Project" (this option is also available under the "Build" menu item).

Here is an older tutorial, but the interface is similar so you can see the screen shots.

http://weblogs.asp.net/scottgu/archive/2005/11/06/429723.aspx