The first service pack for Visual studio 2008 has been released. At the same time the guys (and girls ) at Microsoft have been busy and have also shipped an updated Silverlight Tools. The downloads can be downloaded at:

• Visual Studio 2008 SP1 (release and full download)
• Silverlight 2 Beta 2 tools refresh for SP1

Please follow the installation instructions below otherwise you might get some issues.

1. Download Visual Studio 2008 SP1 and burn the .ISO to a disc
2. Close all applications and install the SP1 from the dics
3. Restart your PC once the installation is complete
4. Download and install the new Silverlight 2 Beta 2 tools
5. Restart your PC
6. Begin using Visual Studio on your Silverlight app's  

If you have any questions or issues feel free to post below or seek help in the Silverlight Forums

EDIT: I have come across a small bug, something when installing SP1 on a fresh build of Vista you get an InitalizeError message being displayed and the Silverlight isn't rendered out on the screen correctly. To resolve this simply remove the IIS window component, restart the PC and re-install the IIS window component and it should be fixed