The direct/indirect installation experiences in Silverlight 2 are different from those in Silverlight 1.0. However, I think that you will find the new experience to be better both for developers and for end-users. Let me start by summarizing the 1.0 experiences.
Indirect Installation
The 1.0 indirect installation experience presented a button which read "Get Microsoft Silverlight". Clicking this button redirected the user to http://www.microsoft.com/silverlight/install.aspx. There, the user was presented with the Silverlight licensing text and was given a button which started the download of Silverlight.exe. Once installation was complete, the user had to navigate back to the page that initiated the installation process.
Direct Installation
The 1.0 direct installation experience presented the same button as Indirect Installation but also added the Silverlight licensing text beneath the button. This changed the visual appearance of the installation prompt to that in mchlSync's last post. When the user clicked the "Get Microsoft Silverlight" button they were redirected to Silverlight.exe directly, in the context of their current page. This experience allowed website owners to control the installation experience on their own web page, but it required additional screen real estate for displaying the licensing text.
Browser Restarts
Both of these models had the same requirements for avoiding a browser restart when installation was completed. Namely, the user had to be on Windows IE and they must not have had a previous version of Silverlight installed. If either of these criteria were not met then a browser restart was required.
Silverlight 2 Experience
In Silverlight 2 Beta 1 we merged the two 1.0 installation experiences into a single experience. We created a simple installation image which is small and easy to understand, similar to the 1.0 Indirect image:
However, clicking on the image has the behavior of the 1.0 Direct experience. The installer download occurs directly on the page which presents the image without redirection to Microsoft.com. The licensing text is presented to the user as part of that installation experience instead of on the web page.
If the user is on IE and did not previously install Silverlight then a page refresh is sufficient for instantiating the control. In fact, you can simply call Silverlight.createObject(...); again to accomplish instantiation without a refresh. If the user is not using Windows IE or has a previous Silverlight runtime installed then they will have to restart their browser, just like in 1.0.
If you want to try the new merged direct/indirect installation experience then just click the 'Install Silverlight' image above. It uses HTML which is very similar to that which Silverlight.js generates for Silverlight 2 Beta 1!
Piotr
Piotr Puszkiewicz
Program Manager
Microsoft Silverlight