SQL Server 2008 Express Edition has been released and is now available for download at this link. Currently, only the basic version is available, but the version with tools and another version with advanced services (includes Reporting Services and full text search) will be available soon.
For those unfamiliar with the many different versions of SQL Server, this is the free version that anyone can use and install, just has a reduced feature set and reduced physical limitations (1 CPU, 1 GB RAM, 4GB user data per database). In other words, great for development, but should not be used on production servers.