Did anyone ever find a resolution for this? I'm experiencing the same problem, also under Vista Ultimate 64-bit. Happens in both IE7 (32-bit or 64-bit) and the Visual Studio 2008 browser, but not in Firefox. Tried uninstalling and reinstalling Silverlight 1.0, but that didn't help.
The initial error is somewhat different in the Visual Studio 2008 browser:
'Sys.Preview.MediaRes.Xaml_UnsupportedBrowser' is null or not an object
Also tried with Silverlight 2.0.30226.2 installed. Same behavior.