This describes how to use Visual Studio 2008 SP1 to create a Silverlight 'Hello World' application.

1. If you have not done so already, install the Silverlight 2 browser plug-in at: 

http://www.microsoft.com/silverlight/resources/install.aspx

2. If you have not done so already, install the "Microsoft® Silverlight™ 2 Tools for Visual Studio 2008 SP1" at:

http://www.microsoft.com/downloads/details.aspx?FamilyId=c22d6a7b-546f-4407-8ef6-d60c8ee221ed&displaylang=en

3.  Open Visual Studio 2009 SP1.

4.  Select File menu -> New Project...

5.  The New Project dialog will open. 

Select Visual Basic in the Project types list on the left side of the dialog.  Click the Silverlight Application template (1) in the Templates area of the dialog.  Change the name of the Project to 'HelloWorld' (2).  Click the OK button (3).

6. The Add Silverlight Application dialog will open.

Make sure option 1 - 'Add a new ASP.NET web project to the solution to host Silverlight' - is selected.  Click the OK button.

7.  Your solution will be built.  It contains (1) a Silverlight application project and (2) an ASP.NET web site.

8.  Add a single line of markup the XAML.

9.  Press the F5 key to build the solution and view the HelloWorld Silverlight application in a web page.

10.  The Debugging Not Enabled dialog will open.  Click the Ok button to use the default settings.

11. Your HelloWorld application runs in the browser.

Next Silverlight 2 blog post:  Dissecting the HelloWorld Solution