Microsoft just released Silverlight 2 with all developers and designer tools:
[Microsoft Silverlight 2 SDK](http://www.microsoft.com/downloads/info.aspx?na=22&p=1&SrcDisplayLang=en&SrcCategoryId=&SrcFamilyId=&u=%2fdownloads%2fdetails.aspx%3fFamilyID%3d8d933343-038f-499c-986c-c3c7e87a60b3%26DisplayLang%3den) [Expression Blend 2 SP1](http://www.microsoft.com/downloads/info.aspx?na=22&p=4&SrcDisplayLang=en&SrcCategoryId=&SrcFamilyId=&u=%2fdownloads%2fdetails.aspx%3fFamilyID%3deb9b5c48-ba2b-4c39-a1c3-135c60bbbe66%26DisplayLang%3den) [Silverlight Tools for Visual Studio 2008 SP1](http://www.microsoft.com/downloads/info.aspx?na=22&p=5&SrcDisplayLang=en&SrcCategoryId=&SrcFamilyId=&u=%2fdownloads%2fdetails.aspx%3fFamilyID%3dc22d6a7b-546f-4407-8ef6-d60c8ee221ed%26DisplayLang%3den) [Deep Zoom Composer](http://www.microsoft.com/downloads/info.aspx?na=22&p=3&SrcDisplayLang=en&SrcCategoryId=&SrcFamilyId=&u=%2fdownloads%2fdetails.aspx%3fFamilyID%3d457b17b7-52bf-4bda-87a3-fa8a4673f8bf%26DisplayLang%3den) [Silverlight 2 Developer Runtime (Windows)](http://go.microsoft.com/fwlink/?LinkId=119972) [Silverlight 2 Developer Runtime (Mac)](http://go.microsoft.com/fwlink/?LinkId=119973)
And the surprise is that there is also some tools for Eclipse: http://www.eclipse4sl.org/
Read more on the Silverlight web site and on Tim Heuer blog.