I have found the new help viewer supplied with the VS 2010 Service Pack to be fairly worthless.  My primary problem has been that I can only follow content by clicking on the TOC treeview.  Clicking on internal hyperlinks in the help document window brings up a raw xml file that tells me it can't find the content.

I've managed to come up with a procedure to fix the problem.  The solution fixes the issues of dead hyerlinks in documents while using local content.

• Open the MS Help Viwer 1.1.
• Start the Help Library Manager
• Switch to online content
• Close down the manager and help viewer
• Start up VS 2010
• Open a project and a c# file
• Hilight a c# keyword and press F1
• You should see online content
• Now, while in VS 2010, click Help->Manage Help Settings
• Switch back to local settings
• Shutdown the help viewer and VS 2010
• Now you may start help from VS 2010 or by clicking the documention link in the start menu.

Internal links can now be followed correctly.  You will also see that local style sheets are now correctly applied to the local help content.