If you get this nice error message, you are probably lost, because there is no hints on WHY!!!???

Microsoft Visual Studio
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Unable to start debugging. The Silverlight Developer Runtime is not installed. Please install a matching version.
Check your registry!!
When you create a Silverlight project, VS looks for the HKLM,SOFTWARE\Microsoft\Silverlight\Components\Debugging reg key to make sure you have the dev runtime.
And when you debug, Silverlight looks for the HKLM\Software\Microsoft\.NETFramework\DbgpackShimPath reg key.
Thanks Amy!! Check out her blog about Silverlight and web dev
So your registry should have those keys and pointing to
On 64bit machines check
HKEY_LOCAL_MACHINE\SOFTWARE\Wow6432Node\Microsoft\Silverlight\Components\Debugging
HKEY_LOCAL_MACHINE\SOFTWARE\Wow6432Node\Microsoft\.NETFramework
Both these keys should point to the same version (see my examples for Silverlight RTM)