This is very strange.
I have an XAML file that looks as follows...
I had come across the same problem when i got a project sample from msdn. the issue was it was a 4.0 project and i did not have the 4.0 in my system, couple of referenced dlls were missing(system.xaml and another one) removed them. tried to compile, would always throw the initializecomponent method not found. went into the project properties changed the target framework to 3.5 and it is not complaining anymore.