Machine had Blend pre-beta 2 and had created a SL application.
Along came beta 2 and Blend was un-installed and the latest version of Blend installed.
Old Blend project was manually copied and pasted (see previous post on Blend and Beta 2) into a new Blend project, built and tested.
.xap and default.html copied over to web server.
When default.html was opened the page displayed the Get Silverlight banner even though the browser had the correct Silverlight. Clicking Get displayed a site saying that the site was using an old version of Silverlight.
So I took the source files from Blend and opened them on a machine with Visual Studio + beta 2 toolkit. This told me that the project needed upgrading (eh and why?) so I let it and built the project. Deployed it to the web site and everything worked fine! Not sure what happened there but I’m suspicious of only having Blend on a machine, I’m not ruling out some manual mess-up but why would the Blend build not raise the problem? Oh well, I”ll put it down to beta fun.