vb 3.5 is currently in beta 3 and we'll have a few more beta releases before it goes gold. You can upgrade to vb 3.5 although its not recomended it until it does go gold.
3.5 is an extention of 3.0.7 in the way that vb 2.2.x was to vb 2.0.x - or in other words, some of the updates and added features changed enough of the coding that it wouldn't do it justice to call it 3.0.8.
Of the top of my head, 3.5 adds inline moderation, classes, a plugin system and some more good stuff but you'll find that there are some coding and other similiarities between 3.0.7 and the latest beta.
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