There are certainly merits to both languages. Generally, the C# users are much more zealous in their support for C# than VB users are in their support for VB. I can code faster in VB; however, I have run into a few places where I had to write something in C# (such as the case where there is no op_implicit in VB [I know everyone says don't use it, but I got sick of writing CType over and over again and in specific cases it's the best way to go]). With Option Strict, Option Explicit, DirectCast and TryCast, there really isn't anything in your day to day stuff that VB can't do that C# can. In 2003 that wasn't the case, but with 2005, you can even do things like custom events, and since we can type VB faster than C#, we use VB. It generally comes down to personal preference (do you like curly-braces everywhere?). 99% of users will never write anything sophisticated enough to choose the language based upon technical merit (such as yield return, op_implicit, anonymous methods, etc.).
Many users of VB also like the realtime compiler that tells you your errors as you go, though if you talk to a C# guy, he would consider that to be "babysitting." According to MS, in .NET 3.5 with Orcas, C# is being geared to be the Class Library language, while VB will be the language of choice for UIs. All personal preference.