Microsoft has released Windows Azure Tools for Microsoft Visual Studio 1.1 today.
Windows Azure Tools for Microsoft Visual Studio extend Visual Studio 2008 and the upcoming Visual Studio 2010 RC to enable the creation, configuration, building, debugging, running and packaging of scalable web applications and services on Windows Azure. Installation includes the Windows Azure SDK. (For VS 2010 Beta 2 please use the November 2009 release)

Windows Azure Tools for Microsoft Visual Studio 1.1 includes the following
C# and VB Project creation support for creating a Windows Azure Cloud Service solution with multiple roles.

Tools to add and remove roles from the Cloud Service.

Tools to configure each Role.

Integrated local development via the Development Fabric and Development Storage services.

Running and Debugging a Cloud Service in the Development Fabric.

Building and packaging of Cloud Service Packages.

Browsing to the Windows Azure Developer Portal.

New for version 1.1:
Windows Azure Drive: Enable a Windows Azure application to use existing NTFS APIs to access a durable drive. This allows the Windows Azure application to mount a page blob as a drive letter, such as X:, and enables easy migration of existing NTFS applications to the cloud.

OS Version Support: Allows a Windows Azure application to choose the appropriate Guest OS to run on in the cloud.

There are also some bug fixes in this release.

Download it here: http://www.microsoft.com/downloads/details.aspx?displaylang=en&FamilyID=5664019e-6860-4c33-9843-4eb40b297ab6 and get your cloud going