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Development in the new Silverlight environment can be achieved using any .NET programming language, so long as the language can communicate with the Silverlight CoreCLR.
Microsoft has released a new version of Visual Studio that has a sliverlight development environment specifically designed for creating Silverlight applications, and their Expression Bend 2.0 can be used to develop user interfaces for Silverlight applications.
The key thing to remember when developing in Silverlight is that the CoreCLR, not the .NET Framework CLR, must be targeted by the development application.