Create a Silverlight 1.0 project
To create a Silverlight project in Expression Blend
On the File menu in Expression Blend, click New Project.
The New Project dialog box appears.
Under Select a project type, select Silverlight 1.0 Site.
Next to Name, enter a name for your Silverlight project.
Next to Location, enter the path of your projects folder, or click the Browse button to select the folder by using the Browse for Folder dialog box.
A Silverlight 1.0 project is created and opened for editing in Expression Blend.
Because a Silverlight project is a website project, it cannot be created as a temporary project in memory. Instead, it must be created in a physical location. If an error message about temporary projects appears after you click OK, close the error message, and then, on the Tools menu, click Options, click the Project tab, and then select the Save new projects to the Expression Blend Projects folder (or a specified folder) check box. Afterwards, you will be able to create a Silverlight project.