For RTM the error message regarding password rules will be much clearer.
The configuration in RTM for the <add /> provider elements will no longer create red squiggles for attributes. However, due to some limitations in the Whidbey config Intellisense, only "name", "type" and some other configuration system specific attributes will show up. Devs will need to paste in the additional provider specific attributes. The problem is that the automated process we have for generating the config XSD used by Intellisense doesn't have a way to "peer" into the internals of various providers and ascertain what additional provider attributes are supported or required by any individual provider. This is why attributes like connectionStringName don't show in Intellisense, even though they are required by the provider. To make it a bit easier though to determine the correct config syntax, take a look in:
%windir%\Microsoft.NET\Framework\v2.0.50215\CONFIG\machine.config
The membership, role manager, and profile features all have default provider configurations listed in there that you can copy and paste. For site navigation providers and web parts personalization providers, there are default configurations in:
%windir%\Microsoft.NET\Framework\v2.0.50215\CONFIG\web.config
The default connection string that is used by all of the Sql providers is located in the <connectionStrings> section in machine.config. This connection string is set to use Sql Server Express by default - the intent being that folks using the default intalls of VWD or VS will have database connectivity that just works. However, coming from a Sql Server background I agree that one of the first things I do is to either change the connection string in machine.config, or clear and redefine the connection string in my applications:
<connectionStrings>
<remove name="LocalSqlServer"/>
<add name="LocalSqlServer" connectionString="Server=(local);Integrated Security=SSPI;Database=aspnetdb"/>
</connectionStrings>
I think part of the issue is that the web admin tool works great if all of the config defaults stay the same - however you need to manually change connection string information in config before the web admin tool works properly against remote databases.