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Xbox Friends Watch – v1.2 has been posted
March 26, 2008
This is a very small update that is the same as version 1.1, except that a fix has been added to allow the sidebar gadget to run if you have installed the Silverlight 2 Beta 1 runtime.
There was a small bug in path resolution that the team is aware of and will hopefully be able to fix in future releases.
When setting the source parameter during application initialization the workaround involves making the path absolute using the gadget protocol.
Old code:
source: "xaml/SideBar.xaml"
New code:
source: "x-gadget:///xaml/SideBar.xaml"
I know this is not the promised version 2 that many of you are looking for, but getting past this bug is a step in the right direction.
Thanks to Donovan for finding the solution!
Adam Kinney's blog has moved 
When I installed the gadget it says”Get microsoft silverlight” I uninstalled it and reinstalled it the version 3, but it still tells me the same thing
When I installed the gadget it says”Get microsoft silverlight” I uninstalled it and reinstalled it the version 3, but it still tells me the same thing
Same problem here.. Windows 7
Installs and opens in the sidebar just fine, but it says “click the settings icon to the right to add your friends’ gamer tags”. The settings icon isn’t appearing, there’s just the X and the part where you can click and drag to move the sidebar.
My Silverlight version is 3.0.40818.0 if that helps