Torontonian "wavesmash" has been tinkering with getting a Silverlight app up and running on his Blogger blog. Silverlight Streaming got him most of the way there, but he found the recommended pattern of placing the Silverlight control construction in a separate createSilverlight.js file became a show stopper because Blogger won't let you serve .js files from their domain (and for good reason).
What to do? What to do? Copy the content of createSilverlight.js into a script block in your HTML, of course.
The createSilverlight.js pattern is just that: a recommended pattern. There are dozens of ways to slice and dice the construction of the Silverlight control. The createSilverlight.js pattern was anointed with recommended status over other techniques because it was considered easier to approach and explain.