I looked at the VB PDC presentation and a recent team interview. Visual Basic 9 includes an impressive range of features, and the team is currently planning even more unannounced features.
The difference in focus between the C# and VB team is becoming much more evident: The VB team is opting for greater relevance and convenience in the short term, while the C# team is trying to avoid creating long-term baggage. The end result is that Visual Basic is definitely going to be much more fun to program.
While the C# has decided to include a few choice SQL keywords (select, from, where, orderby and groupby) and no XML literals, the VB team has opted to include the full range of keywords available in a SQL query as well as support for embedded XML with schema validation.
One notable feature that the Visual Basic team left out was iterators—a C# feature that was used to build in the object and XML query support in the framework. However, iterators may actually be somewhat redundant except for some gains in memory and performance, because query comprehensions, which return IEnumerable<T>, can now also be used to construct enumerators.