I found a very good post: How to do LayoutTransform in Silverlight. Currently Silverlight supports RenderTransform out of the box. Read this: http://blogs.msdn.com/delay/archive/2008/05/27/lying-to-the-layout-system-for-a-good-cause-bringing-layouttransform-to-silverlight-2.aspx on how to make a layout transform work in SL2.
This is pretty nifty thing, since layout transforms can be used for a lot of things. The author has pretty comprehensive tests and comparison between WPF and Silverlight, which makes me confident his implementation works as expected.