I used the shader templates given through Greg Schechter's blog: http://blogs.msdn.com/greg_schechter/archive/2008/08/11/a-visualstudio-buildtask-and-project-and-item-templates-for-writing-shadereffects.aspx
It was all simple to add the wpf shader templates and create the project. I'm also able to see that the shader is working through the visual studio 2008 designer when editing my xaml. But I get this error when I run my program: Cannot find type 'ShaderEffectLibrary1.Effect1'. The assembly used when compiling might be different than that used when loading and the type is missing.