EDIT : This video has been disabled as there are better ways for playing Silverlight videos now. I have removed the earlier method.
Thanks to these , i refered to
Posting a Silverlight Streaming video on ur blog By Abhishek Kant
Windows Live Quantum Mechanics
Silverlight-enabled Blogger Template
Silverlight Streaming is Now Live
Soon I will be posting the steps required to post a Silverlight Streaming video such as this one (on Blogger Blog), as these won't let you serve .js files from their domain.
UPDATE (1 Aug 07) : Changes to Silverlight Streaming
EDIT : This video has been disabled as there are better ways for playing Silverlight videos, as can be seen from Above link.