Hi Thomas,
I found out from the files you have sent me that the xap files that are packet using the packager are not full and they lack of two essential Silverlight system assemblies, therefore, I would like to perform a test with you;
First click on "Show All Files" from the solution explorer, you will be able to see that there is a file named Deployment.config within the Properties directory. Delete this file and re-compile the solution. You will then be asked by the Packager to select a solution and then the packager window will appear.
In case the packager finds all the files, you will not see any file name in the list on your right hand, however, if any file is missing (and we expect according to the results that those system files will be missing), you will see their names in the list or even, a popup message asking you where are they located.
Those 2 files are installed within the Microsoft Silverlight SDK Tools and the packager must "know" where they are.
Please let us know what are the results of the test.
Thanks,
Noam