I was getting this problem. I ran the upgrade wizard from the Main Menu: Telerik -> Reporting -> Upgrade Wizard. It fixed all the problems I was having.
The Silverlight viewer depends on RadControls for Silverlight, so have you upgraded that as well? You can find the corresponding version it uses in the Telerik Reporting examples dir (C:\Program Files\Telerik\Reporting Q1 2011\Examples\CSharp\SilverlightDemo\bin, of course if you're using the RadControls in your project, the versions should be the same to avoid mismatch.
Running the Upgrade wizard as Rayne suggested and rebuilding your project should address such problems. If reopening the report designer does not do the trick, try restarting Visual Studio.