SPVisualDev Windows Service

SPVisualDev provides remoting features so you can develop from any client or server OS. This means you don't have to have SharePoint installed localy.

You can create a project on a Vista machine which has Visual Studio 2008 and SPVisualDev version 2 installed.
You need to install the SPVisualDev Windows Service (v2) on the server which you want to work on remotely.