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For the sake of the series I am going to just highlight a few points. For real concrete stuff see:

There is a lot of new language features in 3.5, most important to highlight for this series is LINQ. Moving along to the more shiny information there is significant work put into integration of AJAX, WPF (XBabs support in Firefox, can work with cookies now), WCF (more WS* support, general syndication support, special model for web development,  and Silverlight. WCF + WF and WCF + AJAX now play very well together (lots of support for each other now). There is also support for new cryptography stuff (nice), peer to peer development. Interesting WinForms now supports the same model as ASP.NET for authentication.