Silverlightt 2 broke David Anson's Simple XPS Silverlight Viewer. The cause was that Glyphs.FontUri can longer load fonts from resources other than an assembly. Fortunately, silverlight applications can download other assemblies. So the fix is to package all the fonts used by an xps document into a separate downloadable XAP file. This solution is not optimal because:

1. Silverlight 2 appears to have trouble opening the xps file generated by xps writer. One has to unzip and rezip for Silverlight 2 to open it. See the comments in the middle of this page for more information.
2. One has to create an XAP file for each xps file to package all fonts used by the XAP file.

If you are willing to accept these limitations, yes, it is possible to view XPS in Silverlight 2. See the demo here. The source code may be downloaded here.

To keep track of Silverlight resources and solutions, I created a new web site called www.silverlightkb.com.  I am also going to present at Socal Code Camp on developing line of business applications with Silverlight 2.

Silverlight 2 Release Candidiate is a developer-only release.

The official information can be found here. One the page, we can download the RC0 SDK and Tools for VS2008 SP1. It does not work with Expression Blend 2.5 Preview any more. Instead, it works with Expression Blend 2.0 + sp1 preview.

The RC0 offline document can be downloaded here.

The Silverlight Unit Testing framework has been updated for RC0 and can be downloaded here. Detail information can be found here. As for today, the Visual Studio 2008 Silverlight Unit Testing Project Template has not been updated, it works fine if you follow the option 1 path in this Jeff Wilcox's post.

There isn't a RC0 version of Deep Zoom Composer. Instead, we just need an updated project template.

Some projects are already porting to RC0, for example:

Siverlight multi-file uploader.

ExpandoHeaderControl.

There is an interesting form layout tool called XAML Power Toys and it supports RC0. 

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When develping a large UI project, Composite Application Guidance is a great framework for breaking large pieces into smaller chuncks using model-view-presenter pattern so that multiple developers can work on it at the same time. However, the current Composite Application Guidance for WPF, Prism 1.0, does not support Silverlight. Luckily, Prism 2.0 is on the work so hopefully we will see Composite UI for Silverlight soon.