Netflix is up and running!!! This was just what I needed to do!!! Thanks!
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the newest version of silverlight has some problems and won't work with netflix. Uninstalling as mentioned above will remove silverlight from your system. To reinstall a working version of silverlight, try to watch a movie on netflix and install the version it prompts you to download. After installation, go to the silverlight preferences and check the do not auto update tick box so it doesn't update itself to the nonfunctioning version.
Bit of a pain microsoft doesn't fix this sooner. I had this very problem last night.