Hi,
Using WSP files is the only correct way to deploy workflows to SharePoint. WSP Package can include a feature which activate the workflow on the list of the site. WSP also contains all the workflow related deliverables like assmblies, xml configuration etc.
Install Visual Studio Extensions 1.3 in VS 2008. It contains process to automate the WSP creation and deployment.
Once the WSP is created, you can copy it to production environment. Administrator would be able to install the WSP. On the sites on which WSP Solution is deployed, you will see the workflow feature. You can use workflow feature to install workflow deliverables. Then, you can associate the list or content types with the workflow on the production environment.
Some of the helpful links -
http://msdn.microsoft.com/en-us/library/ms414556.aspxhttp://msdn.microsoft.com/en-us/library/ff650086.aspxhttp://msdn.microsoft.com/en-us/library/cc627285(office.12).aspxhttp://philwicklund.com/archive/2008/02/12/deploying-a-net-visual-studio-workflow-into-a-sharepoint-list-in-10-easy-steps-part-2-of-2-deploying-the-workflow.aspxhttp://blah.winsmarts.com/2008-7-Authoring_SharePoint_2007_Workflows_using_VS2008.aspxI hope you find above information helpful.
Thanks.
Rajendra
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