If your Visual Studio 2005 or 2008 freezes while creating a Silverlight project, or any other project then you might try switching off [CodeRush] add in. Yep, it causes Visual Studio to freeze when creating a shinny new Silverlight 2.0 application. I am sure that [DevEx] folks will fix the problem very soon but for the time being just start Visual Studio, go to Tools\Add-in Manager… and uncheck DevExpress Tools item (I guess that will be a hard step to [CodeRush] addicted people, but don’t worry, it is only temporal). You can run Silverlight project wizard now and you can re-enable [CodeRush] once the project is created.
The workaround and the fact that [CodeRush] is the culprit has been found in this thread.