I'm very happy to announce that there's a new SWF to XAML conversion tool in town, and although I haven't had a chance to play with it myself (no demo version is available), it sounds promising. Specifically—and unlike my SWF2XAML utility—it also appears to convert both animation and sound. Check out the demo page for some nice SWF and XAML comparisons. I have to add that the user interface looks quite unique! The $249 USD purchase price gets you the application and a year of free upgrades.
For completeness, it's worth mentioning that Electric Rain has also announced a Flash to XAML conversion tool called Harmony. According to their site, they expect to release sometime in "Summer 2007."
Update: Robin of Debreuil Digital Works wrote to inform me that you can now download a trial version of their SWF to XAML Edition.