Many who had installed MSN Toolbar were complaining that it works only with Silverlight 1.0 and doesn’t work with Silverlight 2 beta1. But with the release of Silverlight2 Beta 2, MSN toolbar works. Actually there were some XAML rendering issues resulting into poor experience with the toolbar with SilverLight2 Beta1, so it was blocked by Microsoft. Now with the release of SL2 Beta2 has solved the issue and so one can try the MSN Toolbar for IE now along with Silverlight2 Beta2.
Similarly many who were trying out Firefox 3 RC2 with Silverlight2 Beta1 were facing browser crash. But now the release of Silverlight2 Beta2 works fine with the FF3 RC2 Browser.
So I would recommend to those using the Beta1 of Silverlight2 should immediately upgrade to the beta2.
For details about Silverlight2 beta2, please check Silverlight 2 Beta 2 is available now
Talking of MSN Toolbar, I think it will soon be updated as it has 3 outdated search options which will be end soon. Live Search Books and Live Search Academic sites taken down and Windows Live Expo will discontinue service on 31 July 2008. Thus removing those options and adding any new options. So watch out for a MSN toolbar update soon.