How do I make the SQL Express 2008 the default for VS2008 instead of SQL Express 2005?
In Visual Studio, go under Tools -->Options -->Database Tools-->Data Connections. There is a field for SQL Server Instance Name.
I'm assuming that is what you mean by Default. Depending on what type of project you area creating, you usually specify the database connection.
If you're adding MDF's to your web site folder, I think you're using a feature called User Instances. That's hardly advisable, and it's being depracated:
This feature will be removed in a future version of Microsoft SQL Server. Avoid using this feature in new development work, and plan to modify applications that currently use this feature.
Instead of using user instances, use Server Explorer to connect to Sql Server Express, and create a database from there.
Are you running Visual Studio 2008 SP1? I think that may be required for SQL Server 2008 support.
Otherwise, please say why you believe 2008 is not the default. Are you receiving an exception or error message? Is there something that's not working?