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kicks
Expression Blend 2 : Editing in Visual Studio 2008 Instead of 2005
Not sure if this is a installation order issue, but I found that after I rebuilt my machine Blend 2 SP1 would try and launch vs2005 rather than vs2008 when choosing "Edit with Visual Studio" option. I had to exit Blend and launch again for it to read the new value from the registry, but it works.
I recommend exporting the reg value before pasting the new value however to be safe.