I am pulling my hair out on this one.  I have tried for two days to get a working dev environment for Silverlight 1.0 projects
and I'm getting nowhere.  This is a brand new laptop with Vista 32 bit.  No dev tools at all.  I installed in the following order:

Silverlight 1.0 Final
Silverlight 1.1
Orcas B2
Silverlight 1.1 Tools for Orcas
Silverlight 1.0 SDK
Silverlight 1.1 SDK

I am having NO problems with Silverlight 1.1 projects in Orcas.  The Intellisense works and no errors. 

The issues are with Silverlight 1.0 projects.  I create a new Silverlight JS Application and immediately there
are 23 errors on scene.xaml, related mostly to missing assemblies (see screenshot below).
Also, the Intellisense does not work since it cannot find the assemblies (In the screenshot, I am
triggering Intellisense and you can see what I see.  I am also hovering over one of the squiggly red
error indicators to show the error there).  ...and the REALLY bizarre part is that when I run it, it
runs just fine! 

I have un-installed, re-installed, combed the web and the forums, tried everything I could find, and still no love.

Anyone have any ideas??

Thanks in advance for your time.