Silverlight fixed - no more odd behavior
I posted recently that i've had some odd behavior from Silverlight and started to look into why i was getting this.
Couldn't find any exact explanation on how to resolve it, but did finally manage to get things rolling.
Basically what i think happened was a restore (from previous version) hadn't been done properly - not entirely certain what went missing, but the fix was to uninstall Silverlight 2 and Silverlight tools for Visual Studio 2008.
I then re-installed Silverlight 2 and added Silverlight Tools for Visual Studio 2008 SP1 and voila - the behavior went away.
So, if you're experiencing the same problems i had, just follow that and things should be fine again.
Silverlight Tools for Visual Studio 2008 SP1: