Hi G S S,
You can surely use Expression Blend 2 as our controls are fully compatible. You can drag them to the canvas and set their properties in Blend. Also you can edit the templates and style the controls. Here
is some part of our help that will get you started.
Unfortunately Blend studio is meant to be for designing your application, not the programming part. So I suppose sooner or later you will need your VS studio repaired and I suggest consider reinstalling it to resolve the problem.
the Telerik team