"Using the tools and information identified above, develop a playable video game application ("Game"), for operation on either the Windows Vista, Windows XP SP2 or Xbox 360 platform..."
Vista comes with .Net 3.0 preinstalled, so that's already there. So long as you make it clear that you've written a game for Vista and not XP SP2, I can't see an issue about leaving out the redist, but I'm just giving my interpretation. The MS Research guys have been good about getting back to us with answers, so I doubt you'll be left waiting for a definite answer for too much longer.