I've updated the article on how to build a development machine for SharePoint 2007.
Several of the recommended tools were moved into a new optional section, the most notable of which is the VSeWSS component which I really can't recommend. There are so many better project templates available on CodePlex that the sole bright spot of VSeWSS is the Solution Generator. In another tragic turn, VSeWSS was "updated" and baked into VS 2008 in a way that actually made a few templates worse. So while the workflow designer is better, it's even harder to deploy your custom workflow to another machine now.
As always, if you see ways to improve this how-to guide I'd love to hear from you!