There seems to be an issue with SL 5 beta and the SL April 2010 Toolkit.
After converting a Silverlight Solution (which compiled well under SL 4!) to SL5 I get the following error:
The tag 'TreeViewDragDropTarget' does not exist in XML namespace 'clr-namespace:System.Windows.Controls;assembly=System.Windows.Controls.Toolkit'
Any ideas?