I just re-installed Visual Studio.NET 2008 on my machine after un-installing all the required components. After the successful installation I opened the VS 2008 Team Suite and could not find the Silverlight Project. So, I went to the Microsoft website and downloaded the Add-On and installed it. Now, I can see the Silverlight Project but when I create the Silverlight project all the references are messed up and I cannot even add a reference to a .NET assembly. Here is the screen shot.
Silverlight seems to be pretty much busted!