If you've used Silverlight 2 much, you probably have already run into the issue with URI's that can be specified in XAML (e.g. Image and MediaElement). When using relative URI's for these elements, Silverlight 2 uses a "Site of Origin" resolution symantic. Instead of resolving the relative URI's based on the website that the Silverlight 2 application is hosted on, it resolves it based on the site of the origin of the application (the .xap file). If the application is hosted on a site (i.e. http://mysite.com) and our .xap file is in a directory (i.e. http://mysite.com/ClientBin), then a relative URI will be resolved based on the locaiton of the .xap file. This means that a relative URI like "/foo.jpg" we resolve to "http://mysite.com/ClientBin/foo.jpg" *not* "http://mysite.com/foo.jpg" as you might expect. In fact, changing this to "../foo.jpg" doesn't change anything. It thinks that the directory of the .xap file is the root of the URI, no matter what you do. Lastly, this also means that if your .xap file is hosted on a site other than your website, these URI's are relatvie to that remote web server, not yours.