Well guys am currently reading about the WPF/E and it's architecture while browsing i got toward a nice video that goes through creating an Album viewer using the WPF/E SDK and AJAX and running it inside ASP.NET 2.0
here you go
http://weblogs.asp.net/dwahlin/archive/2007/01/05/viewing-albums-with-wpf-e-and-asp-net-ajax.aspx