I am having load of issues getting my SL-based gadgets to work! I do the following:
Create a standard silverlight application (Silverlight 3 GDR 2 - 3.0.40818.0) and run it - it works! I then take the ClientBin folder, the test page (html) and the silverlight.js files and place them in a folder! I then double click on the html test page to run it. IE8 warns me that its a active x control. If I accept it opens fine! I then add a very basic gadget.xml file (to make it a valid gadget) and place it in the correct folder. Right click on the desktop and select add gadget - select my gadget and drag it to the desktop! The gadget show but I always get the image to install silverlight? Why?
I also updated the params to x-gadget
<param name="source" value="x-gadget://ClientBin/MyBusiness.xap"/>
Is their any known issues with running it on x64? Here is a article about flash + x64... does this somehow relate to silverlight?