I recently installed Blend 2 August Preview in order to cut some Silverlight 1.1 CardSpace examples.
I started by using the W2K3 VS2008 Beta 2 TFS VPC image, then installed Blend2, the VS2008 Silverlight Alpha Tools.
Unfortunately the "Open in Expression Blend" context menu option in VS2008 failed, when Blend2 came up and said "The name Canvas does not exist in the namespace http://schemas.microsoft.com/winfx/2006/xaml/presentation".
There was also another symptom: When you open the "New Project" dialog in Blend2 the Silverlight (.Net) and Silverlight (.Net "Orcas") options were missing.
After a few hours thinking that I had the installation order incorrect, and talking to fellow Readifarian Damian Edwards, I found that there are two builds of the Blend 2 August Preview: 2.0.1075 and 2.0.1077. Damian is running the older one on Vista without problems.
I found this link: http://silverlight.net/forums/p/3628/10697.aspx which pointed me to the later build. This one works fine on the W2K3 image.