I am sure that VS2005 will improve before release, but I'm fearful that smart tags are the way its going to be..  I've been trying to say it in comments, newsgroups and Ladybug, and I'll say it again here:

SmartTags are not productive in the code window.  Bold ( and italic) statment?  Perhaps, but true as well.

The Smart Tag has one great feature - it's a visual cue that some action is available on a piece of text.  However, actually using that action takes way too many steps.   1) click the text.  2) Hover over the tiny sliver of an icon under the first letter. 3) pause for a few ms without moving off the sliver of an icon 4) click the new normal sized icon 5) select from the menu.     (Now, the keyboard story is better, but a large part of refactoring is done while looking over the code with nothing but a mouse and your eye, so shortcuts are not used as much.)

Now compare to a context menu:  1). right-click the text. 2) select from the menu. 

Hmm.  Two steps vs. Five.  Clear winner.  And with smart tags, Step 2 is positively frustrating.

So, let me continue to beg:  Make the functionality of a smart tag available in the context menu.  Feel free to keep the smart tag, but add it's items to the context menu (under a submenu is fine).  Don't make me switch keyboard to mouse, mouse to keybord just to use the keyboard shortcuts because they cut out three obnoxious steps.  Please?