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To get your system in proper shape for XNA 2.0 game development you still need to use Visual C# Express 2005. Visual C# 2008 will not work. These are the items required to run XNA 2.0:

1. Microsoft Visual C# Express 2005
2. Microsoft Visual C# Express SP1
3. Game Studio Express 2.0

All download links to the applications listed above can be found on this page:
http://creators.xna.com/Education/existingusers.aspx

If you are coding for Xbox 360 as well the XNA Game Launcher does not work for the 2.0 projects. You can still use this to run your 1.0 code. But really, you should get Game Studio Connect to run your 2.0 code:
http://msdn2.microsoft.com/en-us/library/bb975643.aspx