This is from mywebpages starter kit:
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As long as XAML is not defined as a MIME type in IIS, the Silverlight plug-in can not be loaded correctly. To be able to display the Silverlight gallery, please configure your IIS as follows: (These steps are not necessary if you use IIS 7.0 or higher, since the XAML MIME type is already defined in this version.)
Choose your website in IIS
Open the context menu and choose "Properties"
Select the register "HTTP-Header"
Click on the button labeled "MIME Types..."
If .xaml is not yet listed as a type, choose "New"
Enter the following description:
Extension: .xaml
MIME type: application/xaml+xml
Click "Ok", then choose "Apply"
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