Yesterday was published the latest release of Silverlight 2 which is actually Beta2. Beta2 adds a lot of new features (more details below), but is still a 4.6 MB download that takes less than 10 seconds to install on a machine. It does not require the .NET Framework or any other software to be installed for it to work, and all features work cross-browser on both Mac and Windows machines. These features will also be supported on Linux via the Moonlight 2 release.
Here is a short list of the improvements:
1. WCF templates for Silverlight Enabled.
2. Build configurations.
3. XAML Validation now reports build errors.
4. Setup Improvements.
5. Projects created in Beta 1 are prompted for conversion when opening to Beta 2.
6. Linking a Web Site to a Silverlight Application.
You can build Silverlight Beta2 applications using the VS 2008 Tools for Silverlight and Expression Blend 2.5 June Preview downloads. You can download both of them here. The VS 2008 Tools for Silverlight download works with both VS 2008 and the recent VS 2008 SP1 beta release.
Read more about the new features here