According to Mary Jo Foley, who writes the Microsoft blog for ZDNet, Microsoft will be releasing Silverlight to Windows Update this week, as well as its Windows Server Update Services (for enterprise customers). In both cases the Silverlight installation will be optional - users will have to select it in order to install it, which makes mass distribution fairly unlikely for now.

If you've tried Silverlight and have had problems with content saying you don't have the plugin install, Mary Jo writes that its caused by having Silverlight 1.0 and Silverlight 1.1 installed. Removing the Silverlight 1.1 plugin and re-installing Silverlight 1.0 seems to solve that problem.