Sorry about this issue. It looks like there is some problem with the Silverlight project template. If you ignore it, the Silverlight project won't be created in the solution - just the folder for the project (e.g. MyProject.Client.Silverlight).

We are looking into this problem with the template, but as a workaround I think you can delete that empty project folder and just add a new standard Silverlight project to the solution under the same name. Unfortunately, this will most likely require additional setup steps, such as adding a reference to the Xomega.Framework.dll and possibly others.

Please let us know if you would like us to provide the full list of workaround steps, or if you'll just wait for us to fix the issue with the project template.

We have just published patch releases that include fixes to the Silverlight project template. Please download it for your version of Visual Studio, uninstall the current version and install a new version.

Silverlight 5 SDK should work fine, we've updated the Silverlight tutorial accordingly.

Please let us know if you see any other issues, or need help with anything else.