A: 

Ok,

I'm happy to report I figured it out. There are many breaking changes in Silverlight 2 RTW, I suggest you read this document. The compiler doesn't tell you everything you need to know when you compile your solution, so it can still build but blow up when you run it.

The property causing the problem was "TextWrapping" on the "TextBlock" control. The property was removed in RTW. Why it was crashing the browser process, I have no idea, it's just a simple Xaml parse exception. I only found this out when I put my "App.xaml.cs" into debug by setting a breakpoint in the constructor.

I hope this helps someone else.

Cheers!

A: 

For those wondering... this is the exception i recieved when i set my breakpoint:

Line: 453
Error: Sys.InvalidOperationException: ManagedRuntimeError error #4004 in control 'Xaml1': System.Windows.Markup.XamlParseException: Invalid attribute value TextWrapping for property Property. [Line: 152 Position: 30]
at System.Windows.Application.LoadComponent(Object component, Uri resourceLocator)
at UI.Silverlight.App.InitializeComponent()
at UI.Silverlight.App..ctor()

A: 

TextWrapping is not removed its just a property of the TextWrapping.. The document states that the "WrapWithOverflow" is no longer supported and should be changed to just "Wrap". I have it on my Silverlight 2 RTW and it works fine...