Well, I put on the PDC version of Longhorn, 4051 I think. I attempted to find the XamlC.exe file I was told to use and couldnt. I just found the AC.exe app. So, I guess I “have to” download and install the SDK tonight to be able to compile the XAML files.
I have been also keeping track of what I have been doing with Longhorn and XAML on Channel 9. There is a Wiki in the LonghornWiki section that is called GettingStartedWithXAML that you should check out and help maintain.