Does the Visual Studio 2008 Web Deployment Projects handle deployment of ASP.NET MVC applications? If not, what's the best practice for deploying an ASP.NET MVC application?
Also what's the best way to handle different versions of configuration files (such as web.config) that will contain different settings depending on what type of build you deploy i.e. debug or release?
You can deploy projects using menu option the Build -> Publish. You can publish using http, ftp, or a file share.
This may not be the best option for you depending on your situation. You can always create a custom deployment script to handle any special considerations you have when deploying to your environment.
disclaimer: I'm talking about something I wrote. It's free right now but may not always be
I wrote dashy for this purpose (to handle multiple configs and the deployment thereof onto your live servers. You need to be using SVN as your source control system, and you need to have (or be prepared to use) a CI system, like CruiseControl.NET (or any other).