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
it might be because of your application is developed on Silverlight 5 and you are opening it with the machine having silverlight 4. i am just giving example of 5 and 4. or might be you have not installed the SDK pack of it.
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.
If you run into this issue, a possible cause is due to you having Microsoft SilverLight version 5.0 installed on your pc versus that of 4.0 (Version: 4.0.50826.0). Remove the copy of SilverLight 5.0. Install the version located at the following link - http://go.microsoft.com/fwlink/?LinkId=146060 DO NOT INSTALL version 5.0 IF YOU HAVE SDK 3 AND 4. INSTALL MICROSOFT SILVERLIGHT 4.0