I thought jQuery Intellisense was supposed to be improved with SP1. I even downloaded an annotated version of jQuery 1.2.6, but intellisense will not work in a separate jscr
You'll want to look at this link:
http://blogs.ipona.com/james/archive/2008/02/15/JQuery-IntelliSense-in-Visual-Studio-2008.aspx
UPDATE: There is a new HotFix for Visual Studio 2008 and a new jQuery Intellisense Documentation file that brings full jQuery Intellisense to VS'08. Below are links to get these two:
http://blogs.msdn.com/webdevtools/archive/2008/11/07/hotfix-to-enable-vsdoc-js-intellisense-doc-files-is-now-available.aspx
http://blogs.msdn.com/webdevtools/archive/2008/10/28/rich-intellisense-for-jquery.aspx