This will happen because in silverlight 3 this control has been removed. You need to create the tag <object ...yourself. Here is a simple example: -
<object data="data:application/x-silverlight-2," type="application/x-silverlight-2" width="100%" height="100%">
<param name="source" value="ClientBin/SilverlightApplication1.xap"/>
<param name="background" value="white" />
<param name="minRuntimeVersion" value="3.0.40624.0" />
<param name="autoUpgrade" value="true" />
<a href="http://go.microsoft.com/fwlink/?LinkID=149156&v=3.0.40624.0" style="text-decoration:none">
<img src="http://go.microsoft.com/fwlink/?LinkId=108181" alt="Get Microsoft Silverlight" style="border-style:none"/>
</a>
</object>
, SL, onError, silverlight.js, SL3.