Silverlight 3 OutOfBrowser(OOB) behind the scenes Explained, how to host a silverlight xap package OOB style without installing it – read/modify silverlight OOB metadata

You can find a sample on www.silverlight.net or google(bing) it. The purpose of this post is not to show you how to create a Out Of Browser(OOB) application using visual studio / Silverlight but what happens behind the scene and how you can re-use a silverlight xap package to deploy it on any machine by xcopy or a media drive and run it as a desktop application out of browser style.
First of All, creating a Silverlight Out of Browser Application is one line of code and the change in deployment manifest. Please refer to http://timheuer.com/blog/archive/2009/03/18/silverlight-3-offline-update-framework.aspx to understand silverlight offline/update behavior

In order to support Out of Browser in Silverlight, you just need to call Application.Current.Install() on user action as shown below.

private void Button_Click(object sender, RoutedEventArgs e)
{
Application.Current.Install();
}

When you install the application, it downloads the content(xap package) and generate the html file to host the silverlight app along with some metadata. Everything is generated at isolated storage, as shown below in Windows XP and server 2003

<systemdrive>:\Documents and Settings\<username>\Local Settings\Application Data\Microsoft\Silverlight\OutOfBrowser\<appid>

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