I'm pretty sure my recommendation will fix both your issues. When Silverlight 3 was released, I uninstalled Silverlight, the silverlight VS tools, and the toolkit. Then I downloaded and installed (in order) everything on the Get Started Building Silverlight 3 Applications[^] page. Except for some namespace shuffling (they keep changing stuff for WPF compatibility and when controls get migrated from the toolkit to the framework) everything works correctly. The toolkit is essentially beta, so I highly recommend keeping up the latest version. They are fixing stuff every few months. July is not the newest.
Mark Salsbery Microsoft MVP - Visual C++ :java: