Nov 07, 2006 04:37 PM|sburke_msft|LINK
Hi guys - yeah the problem you're having is because you installed on a machine w/o VS. All of our machines have VS, so we didn't catch this problem. On a machine w/ VS, Microsoft.Web.Extensions.Design.dll gets dropped.
Probably the best workaround for this is to go get that file from a machine with VS and either install it (gacutil -f Microsoft.Web.Extensions.Design.dll) or try dropping it into the bin directory, which I believe should also work but I haven't tried it.
I've been talking with the AJAX team about this, so we're on top of it. Sorry for the confusion.