Visual Studio family contains many products. The VS 2008 SP1 released a few months ago have fixes for all products in the family. An incorrect order of applying the service pack usually lead VS products into an inconsistent state. The most common issue I see is that a particular method/type in a VS assembly can't be found.
In Visual Studio 2008 SP1, we have fixes for
- Visual Studio IDE.
- Team Explorer.
- Load Test Controller.
- Load Test Agent.
See KB 950264 for detailed description.
When applying the SP1, only fixes for already installed products are applied. For example, you might have installed Visual Studio 2008, then applied the SP1, latter you installed the load test controller on the same machine, then fixes for the test controller would not be applied unless you install the SP1 again.
So, the correct order of applying the SP1 is to install the SP1 at the latest. If you applied the SP1 and later installed a new product in the above list, then you should apply the SP1 again.