>What is the best way forward? Is C# here to stay?
Undoubtedly - as is C++.
>Is C++ in VS2005 going to import my MFC code easily?
Generally yes - the newer compiler is more strictly compliant so you
may have to do some changes, but they're usually beneficial ones. The
conversion of the workspace project settings can be less than optimal
though - once you've tried a direct conversion you might want to
consider creating a new project and copying your existing source files
into it.
There is renewed enthusiasm at MS for MFC, so the future there looks
bright too.
Dave