The current 1.0 version of the Visual Studio plugin can only be installed with Visual Studio 2005 Standard and higher. The Express versions won't work because they won't allow plugins to be installed into them.
At WES this year, RIM said that 2008 support for the next version was coming soon and a publically available Beta will be available any time now. It still won't work with the 2008 Express versions, because they continue to not support extensions via plugins.
You can see some of the new functionality you can use in the new version of the plugin here:
BlackBerry - Developer Video Library
They also said that GPS support will be in this next version as well