I recently sent an email to DLink support about the downgrade from IE8 beta back to IE6. (I am on the beta team hand have since completed my testing). Below is the thread posted on Silverlight's forum and apparently IE8 Beta left behind the key referenced by a couple posters here. I removed it and everything works fine. One thing I did notice is that my registry did not contain the 'accepted length' key referenced by a few posters.
http://silverlight.net/forums/p/7452/77779.aspx
IE6 SP1, IE7, and XP SP3 upgrades did not fix the issue. Be aware that IE8 appears that it will be installing silverlight by default and the removal of IE8 or silverlight will not remove the key. Odd though, IE8 Beta after it was installed did not exhibit this behavior. Only after it's removal and downgrade did the issue arise.