So Windows Embedded Compact 7 (another classic from the naming department) supports Silverlight for Windows Embedded.
http://www.microsoft.com/windowsembedded/en-us/products/windowsce/compact7.mspx
But this is a C++ only stripped down version of Silverlight 2 XAML.
Does anybody know if Windows Embedded Compact 7 will support real Silverlight? This seems to be out of step with Windows Phone (which I think is based on Windows CE 6) and the fact that Windows Embedded Compact 7 supports Flash 10.1.