I found it... I need to add
<runtime>
<NetFx40_LegacySecurityPolicy enabled="true"/>
</runtime>
to the C:\Program Files (x86)\Microsoft Visual Studio 9.0\Common7\IDE\devenv.exe.config file not the C:\Program Files (x86)\Microsoft Visual Studio 9.0\Common7\IDE\PrivateAssemblies\RSPreviewPolicy.config
Once I did that and restarted VS2008 it worked fine