It is happening, it is definitely happening! Just install the fresh copy of this new generation of the server OS and highly anticipated IDE.
I had to enable Aero to experience vast UI enhancement along with the core enhancements :-)
- Was able to install all the drivers from Vista, even wireless :-) - On my dual core 2.0 Ghz/2Gb laptop performance is comparable to Windows Server 2003 that is still on partition C:\ which is impressive. - It took less to install VS 2008 Pro with SQL Express 2005 than it used to take to install SP1 for VS 2005 which is even more impressive.
On top of this package I had to install SQL Management Studio Express, Office 2007. Everything was installed without a single issue! The only thing that I could not install is MSDN - I can live with that and also got unhandled exception when opening the SQL Management Studio, but I was able to login anyways.
As a part of the configuration, I had to re-enable Mixed authentication in SQL 2005 to have the "sa" account working and reset the password for this user.
What about Sitecore? No problem at all! Just follow the official instructions for installation on Vista and you are up and running! What is the most exciting is that the installation program worked flawlessly (big thanks to Yan) and I did not have to use manual install.
Looking forward to explore new features of IIS7 and Visual Studio 2008!