VS 2005 has a much more sophisticated method of aligning controls. You can set the Margin and Padding properties to set external and internal spacing, plus controls will produce SnapLines that enable you to do things like line up the text in two controls rather than the edges of the controls, which is more intuitive. If you want to change options that affect the IDE then the logical thing to do would be to select Tools -> Options from the main menu and see if there is something in there. A quick look reveals Windows Forms Designer -> Layout Settings -> ShowGrid. Set this to true and restart the IDE and you'll have the old grid back. Note that you may also need to change the LayoutMode and SnapToGrid options. I strongly suggest that you use the new methods instead though. In my opinion they are far superior and don't take much getting used to.