One of my colleagues wanted to upgrade VS 2005 Web Site Project to be VS 2005 Web Application Project.
I pointed him to http://webproject.scottgu.com/CSharp/migration2/migration2.aspx
Then we had an issue with non-compiling files from OLD_APP_CODE folder-they had Build Action as Content (see http://forums.asp.net/p/1065290/1743735.aspx#1743735)
And now I’ve read Rick Strahl‘s post. VS 2008 doesn’t have conversion wizard at all. The process has become fully manual-but well described in Rick’s post From ASP Stock Projects to Web Application Projects in VS 2008