IIS, VD and .NET 3.5

I installed VS2008, converted the WebApp project from VS2005 to VS2008 just
in one click without any changes required, it runs great in the VS2008
built-in IIS using .NET 3.5, but the problem is that I have no idea how to
setup the IIS VD to start using .NET 3.5. When 3.0 and later 3.5 were
installed on my machine I didn't get anything new in the IIS VD settings,
same 1.1 and 2.0, instead of 2 new items in the DD list to let me select one
of these frameworks. Is it a MS bug or it just doesn't work on my machine?
Is there a lucky person having .NET 3.0 and 3.5 in addition to 1.1 and 2.0
in the IIS VD properties, ASP.NET DD list?

Just D.