To get accelerated hardware performance from .NET Framework 3.0/3.5 and Expression Blend 2, you need to make sure you have a recent graphics driver installed. Check your display adapter for the following settings (Start, Control Panel and then Display):
Click the Settings tab and then under Color quality, make sure Highest (32 bit) is selected.
Click the Advanced button, and then on the Adapter tab, click the Properties button.
Click the Driver tab and look next to the Driver Date to see if the date is more recent than 11/1/2004. If it is not, then video and hardware acceleration will not work properly on your system unless you upgrade your video drivers. This issue will be fixed in future versions of the .NET Framework.