Microsoft recently released Visual Studio 2008. Unfortunately those of us who have been waiting for Silverlight integration with the release version of VS 2008 were in for a bad surprise.
The following message appeared when trying to create a new Silverlight project:
"Package Load Failure
Package 'Microsoft.VisualStudio.Silverlight.SLPackage, Microsoft.VisualStudio.Silverlight, Version=9.0.0.0,..."
The reason was that the old version of Silverlight 1.1 Tools Alpha was not compatible with the release version of VS 2008.
The good news is that Microsoft fixed this issue yesterday and released a new version of Silverlight 1.1 Tools Alpha for Visual Studio 2008.
One important thing to note is that when I installed the new version it failed so I had to run uninstall first and then reinstall the new version to fix the problem.