MIX'07 is here and marks the release of a Silverlight version with .NET support (take a look at http://www.visitmix.com to see some of the stunning Silverlight demos showcased during the keynote).
What's Silverlight anyway? Basically, it's a cross-platform and cross-browser plug-in that enables you to incorporate a rich media experience (video, audio, vector graphics, and so on) into browser apps. The really cool thing about Sliverlight is the fact that it ships with an incorporated version of the .NET Framework, and all of this fits into a package that is less than 4 Mb in size and is designed to install in less than 20 seconds. Of course, we're not talking here about a full version of the desktop .NET Framework, but still, it is a significant part of it. Some speculated that Silverlight used the Tiny CLR which is not true. Instead, Sliverlight uses a version of the .NET Framework that is based on the full version (it's a completely separate binary, but it is derived from the same source tree). Some of the features of the full version (like COM interop, server-optimized GC, Fusion, GAC, to name just a few) were left out for obvious reasons, with the rest of them being part of the Silverlight .NET Framework (a few examples include LINQ, the network stack, threading, collections, XML, garbage collection, a subset of WPF, and many more).
The System.Net namespace in Silverlight does not support SOAP or WS-* yet, but provides out of the box support for REST/POX/JSON endpoints. However, there is also a JSON to .NET bridge component built into Silverlight that can be used together with Orcas Tools Add-in for Silverlight to create strongly typed proxy objects for Silverlight clients that call WCF or ASMX services.
The System.Windows namespaces (home of the WPF) provides a compatible subset of the full WPF feature set. The most notable absence is the support for full-fledged 3D (turns out it is pretty hard to build full 3D support in a cross-platform, cross-browser plug-in). The good news is that you will be able to build pieces of UI for Silverlight that will run without changes in full WPF.
It's also worth to note that having the same JIT, GC and type system with the desktop .NET apps, the Silverlight version of the .NET Framework is super fast (measurements show it is 300-1000 times faster than native JavaScript). Add to this the fact that it can coexist with the full version of the .NET Framework in the same process and you can have a pretty clear picture of the power you're getting.
Here are some useful links for learning a lot more about Silverlight: