We are currently migrating from 2005 to 2008. If you open and save a project while in VS2008, you will not be able to open that solution/project in VS2005 (at least we couldn't find a way easily). If the rest of your team is still in 2005, you should stay there. You CAN, however set up a project in 2008 and keep it compatible with 2005... as long as everyone opening it is using 2008. You keep the .NET version at 2.5, and don't convert most of the stuff that it wants you to convert.
The only time you CAN'T migrate to 2008 is if you are using a report project and SQL Server 2005. VS2008 will only let you integrate a report project with SQL Server 2008. What did we do?
We migrated to 2008 and all the Team Server stuff, except for the database and reporting. Those we kept on 2005, and so I end up having to open both versions on a daily basis... but that's why they pay me the (somewhat??) big bucks!