I have switched to Vista recently and I wanted to keep UAC turned on, as I agree it increases computer security a lot. Some developer tools I use regularly require running elevated:
I have experimented with many suggestions I have found, Compatibility Administrator seemed quite promising, but the result was still not what I wanted. When I used RunAsInvoker, there was no UAC prompt, but the Visual Studio did not work. When I used RunAsAdmin or RunAsHighest, it worked, but there was the prompt.
Is there any way how to teach UAC to remember some particular application should always run elevated and never prompt me about this, or some other way how to allow me launching VS elevated without the prompt? If there is no way to do it, does there exist some security reason why it cannot be done?
I've had to turn UAC off for my 2008 dev system also, despite similar feelings about wanting to be able to use it. It's just too painful to need to keep track of the running context of every single application in order for things like drag/drop between windows to work, or interacting with remote systems, or debugging scenarios, or any number of other tasks. UAC was a good idea in theory, but there seems to have been so little effort put in to making it functionally useful for real-world power users, that at the end of the day, the only feasible solution is to disable it entirely.
Windows 7 will purportedly be somewhat better with eliminating the constant prompts, but unless they really work to address all the cross-application and remote access issues, it's still going to be a non-starter for anyone other than novice users. Here's to hoping they eventually get it to be actually usable.