Starting with the most simple case.
If I press \"File->new project->silverlight business application\" it opens up to MainPage.xaml saying the message attached at the bo
This happens if you have installed visual studio 2011 developer preview on your pc.
To resolve the error close visual studio and your browsers. Uninstall silverlight (no need to uninstall the sdk just silverlight itself).
Then re-open your project. Follow the instructions and it'll be working just fine.