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Originally Posted by jak

The point is that the SP1 version comes as a feature with the Windows7 and I have it turned ON and still it is tellin me to download it!!!
Anw im downloading the 4.0 RC version now... hopefully it will help me with this problem... My monthly download quota passed the limit due to Microsoft and their shitty Windows7

As far as I know, .NET framework 3.5 comes with Windows 7 and not the 3.5 SP1. And as I see you have only the 3.5 version installed.
As a Windows developer, I don't care about downloading every single thing for Windows 7 since for example .NET framework 4.0 and lots of needed stuff along with the SDK shit comes with Microsoft Visual Studio 2010 that is installed on my machine.