Silverlight uses a particular implementation of a XAML parser, with that parser being part of the Silverlight core install. In some cases, the parsing behavior differs from the parsing behavior in Windows Presentation Foundation (WPF), which also has a particular implementation.
http://msdn.microsoft.com/en-us/library/cc917841(VS.95).aspx
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XAML : stands for eXtensible Application Markup Language and pronounced as zammel.
XAML : combined with the next-gen Windows graphics kernel (code-named Avalon) is an all-in-one markup language for hypertext (HTML), vector graphics (SVG), animations (Flash,SMIL), print documents (PDF,XSL-FO), forms (XForms,XUL), and much more.
For more details please visit : http://www.dotnetspider.com/resources/25508-XAML-net-A-Step-Ahead-Series.aspx
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Silverlight Frequently Asked Questions