When trying to install Silverlight 2 Tools for Visual Studio 2008 SP1 I got a Fatal Error
(C:\Users\user\AppData\Local\Temp\Silverlight Tools RTW\Silverlight.2.0_Developer.exe) failed with 0×80070643 – Fatal error during installation. .
After sometimes, i managed to get it working after uninstalling the Silverlight RTM for that I forgot to remove before installing Silverlight 2 Tools for VS2008, so hopefully this might help other also
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