Silverlight 2.0 Beta 1 Error - Creating a new project

Silverlight 2.0 Beta 1 - Error

Error: You need to install the 2.0 versions of the Silverlight runtime and the Silverlight SDK before creating a Silverlight project.

Reproducing Error

To cause this error to happen I simply tried to create a new Silverlight 2.0 Beta 1 Application Project. (Library project did not cause error)

Odd Note and Workaround

One odd thing is that existing projects on my computer (like the digg sample) opened and ran in debug without issue. This is actually a potential work around if the resolution below does not help you. Simply use another computer to create your project and use your machine to develop it by opening the pre-made project.

Resolution

To resolve the errors I had to take the following steps:

1. Restart my PC to make sure nothing was locked in memory
2. Uninstalled all installed Silverlight components (Tools, Runtime, SDK, Hot-Fixes from Chainer, etc)
3. Manually removed all Silverlight files and registry keys that were not cleaned up for some reason by the uninstall step above
4. Uninstalled 3 different versions of Blend Beta/Alpha versions
5. Opened Visual Studio 2008, verified no Silverlight project exists and that dig sample does not open
6. Reinstalled all tools directly from the getting started site:
1. http://silverlight.net/GetStarted/ (Tools Install Chainer and runtime for Beta 1)

Honestly the list of fixes above is fairly "wide" but I am not sure what helped me resolve the issue.