Thanks for the reply, but its not the case in my case. :)
Here are the properties of one of the references I have in the project :
Path : c:\Program Files\Microsoft SDKs\Silverlight\v2.0\Reference Assemblies\system.dll
Runtime version : v2.0.50727
Specific Version: False
Strong Name : True
Same is the case with rest of the assemblies like System.Core, System.Net, System.Xml, System.Windows, and System.Windows.Browser.
Any other way I can resolve the issue?