There's a great sample project here and if you really want to go crazy and generate images/tiles programatically, you can try the sort of thing referenced in this MSDN article.
I haven't found a lot of real documentation regarding DeepZoomTools.dll myself, but I created a small test webservice to turn a single uploaded image into a Deep Zoom source. The relevant code is:
public string CreateDeepZoomImage(byte[] abyte, string fileName)
{
ImageCreator ic = new ImageCreator();
string FilePath = Path.Combine(_uploadPath, fileName);
System.IO.FileStream fs = new System.IO.FileStream(FilePath, System.IO.FileMode.Create);
fs.Write(abyte, 0, abyte.Length);
fs.Close();
FileInfo imageFileInfo = new FileInfo(FilePath);
string destination = imageFileInfo.DirectoryName + "\\" + imageFileInfo.Name.TrimEnd(imageFileInfo.Extension.ToCharArray()) + "\\output.xml";
ic.Create(FilePath, destination);
string returnpath = "/Uploads/" + imageFileInfo.Name.TrimEnd(imageFileInfo.Extension.ToCharArray()) + "/output.xml";
return returnpath;
}
Where the return path is used like so:
ZoomImage.Source = new DeepZoomImageTileSource(new Uri(e.Result, UriKind.Relative));
(Forgive the sloppy code. It does work though.)