T4 is the Text Templating Transformation Toolkit, a text transformation technology Microsoft created to make code generation easier. For example, it is such kind of technology that makes it possible for the DSL Tools to transform visual models into artifacts (code, xml files, etc.).
Since Visual Studio 2008, T4 is pre-installed on all Visual Studio installations, so that you don’t need the SDK anymore to use it. This means that many people are creating some interesting T4 stuff even outside of the DSL Tools world, as GarethJ points out in some of his recent blog posts.
To improve your T4 editing experience, T4 Editor is definitively recommended! It provides many vital editor features, such as syntax coloring and IntelliSense, for enabling you to create your code generator in a more productive way. Otherwise you’ll be dealing with T4 templates as if you were using Notepad!
I’ve downloaded the T4 Editor version for VS08 Beta 2 and was able to confirm that it runs without any issues in VS08 RTM. However, in order to ensure that both VS regular and experimental hives (registry areas) will be able to see the tool, run the following commands as VS 08 Command Prompt after installing T4 Editor:
To update the VS regular hive with the installed packages:
C:\Program Files (x86)\Microsoft Visual Studio 2008 SDK\VisualStudioIntegration\Tools\Bin>devenv /setup
To clean the VS experimental hive by copying the regular hive onto it:
C:\Program Files (x86)\Microsoft Visual Studio 2008 SDK\VisualStudioIntegration\Tools\Bin>vsregex GetOrig 9.0 Exp RANU
To update the VS experimental hive with the installed packages:
C:\Program Files (x86)\Microsoft Visual Studio 2008 SDK\VisualStudioIntegration\Tools\Bin>devenv /ranu /rootsuffix Exp /setup
Notice all of the newly introduced "ranu" stuff (ran as normal user). This is a new feature brought by VS08: it is not necessary to have administrative privileges to compile, execute, or debug a Domain-Specific Language Tools solution. For more information on DSL Tools news for VS08, check this link.
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— AFurtado
The statements or testimonies I offer in this post represent my own personal views.
I am speaking for myself and not on behalf of my employer, Microsoft Corporation.
I am speaking for myself and not on behalf of my employer, Microsoft Corporation.
FurtaSpace - www.afurtado.net 
There is also a nice How-Do-I video on generating from DSLs with T4 here:http://www.youtube.com/watch?v=VHPYfH1vVhg&hl=de
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