So here it was I did to get it working.

First clearning the contents of the Sandbox alone didn't work. So this worked for me....

1. Closed the Browser. IE 8 for me. (Windows 7 home, 32 bit)
2. In the Windows Control Panel uninstalled Silverlight using Programs and Features. (add/remove programs from the old days)
3. Opened IE8 again in Sandbox again and Netflix wanted to install Silverlight again.
4. When it prompted me to Install Silverlight I saved it to the Desktop. (outside sandbox)
5. Closed IE and the Sandbox again.
6. Ran SilverLight Installed from destkop. (outside sandboxes)
7. Reopened IE8 in the Sandbox again and this time it worked again.

Yeah, that's exactly what I just did, except with Chrome.

However, what we got was this link:

http://www.microsoft.com/getsilverlight/handlers/getsilverlight.ashx?v=3.0

We installed version 3.0.50106.0.

To me, this says that we have an issue with the new Silverlight 4 versions being inaccessible from within Sandboxie. However, the resource access monitor isn't helping us to know where the issue is.

Yeah, I did the downgrade on my Vista 64-bit and my XP 32-bit boxes and both are now working.

I have also changed Windows so it won't upgrade it without my permission.

Good job team at least we know the cause and workaround for now!

Have a great weekend everyone.

Now we know the cause of the problem is Silverlight 4. Unfortunately I can't use Netflix to test the problem, but perhaps this will be resolved some other way.

I'm pretty technical... Anything I could try to figure out what the problem might be? Perhaps a disk and registry access monitoring tool?

I appreciate the offer, but I have no idea where to start. It could be some minor part of Sandboxie, perhaps something that has nothing to do with files or registry, that is not emulated correctly, and causes Silverlight to malfunction.

I had the same problem with XP. I used control panel / add-remove programs to remove Microsoft Silverlight.

I rebooted my PC.

I started www.netflix.com on Firefox.

I selected an instant movie to watch.

Netflix said I needed to install Silverlight. I allowed it.

The installl completed in one minute.

The movie started playing. The problem was solved.

I hope it is as simple to fix in Vista. Long Live XP!

Yep, White_Eagle, but now we have version 3 of Silverlight, instead of version 4. I'm sure this will present a problem sooner or later. Websites we may visit in Sandboxie that are developed on version 4 of Silverlight are probably not going to work. Microsoft's own Silverlight page has some components on it that won't work with version 3.

Anyone have any idea how to resolve this? Called the toll-free number on the screen and it says the wait time is nine minutes. ???

Well.. I'm sure Netflix will just tell you to stop using Sandboxie to watch the movies with...

As a temporary fix, we uninstalled Silverlight, installed version 3 of Silverlight, and told Windows Update/etc to ignore the Silverlight update...

Of course this doesn't help when we encounter something that needs Silverlight 4 to function...

I wanted to add here.. From my brief observation and comparison of the file monitoring of Silverlight version 3 and Silverlight version 4 with Netflix Instant Watch access, I noticed that it appears, to me, that the DRM stuff is no longer handled by a .dll in Silverlight 4, rather an .exe. So, this might indicate a substantial change in the way Silverlight 4 handles DRM.

I imagine that this will show up on other DRM related websites, other than Netflix.

There also seems to be two different pages about how Silverlight handles DRM.. one for 4 and one for 3:

http://msdn.microsoft.com/en-us/library/cc838192%28VS.95%29.aspx
http://msdn.microsoft.com/en-us/library/ee923781%28v=VS.95%29.aspx

Now someone just needs to use that to create a Silverlight 4 DRM test app that can serve as a test case for this problem.

On a more realistic note, I suppose that over time, there will be more Silverlight 4 streaming web sites, and I might be able to work with one of them.

I'm guessing you're not in the US or Canada?