Ordinarily I would say use an ItemsControl in conjunction with a Canvas:
<ItemsControl ItemsSource="{Binding Ellipses}">
<ItemsControl.ItemsPanel>
<ItemsPanelTemplate>
<Canvas/>
</ItemsPanelTemplate>
</ItemsControl.ItemsPanel>
<ItemsControl.ItemsContainerStyle>
<Style>
<Setter Property="Canvas.Left" Value="{Binding Left}"/>
<Setter Property="Canvas.Top" Value="{Binding Top}"/>
</Style>
</ItemsControl.ItemsContainerStyle>
</ItemsControl>
But in a display of Silverlight suckiness, the ItemContainerStyle property does not work on ItemsControl. It has support in ItemsControl, but it's not exposed by ItemsControl itself. Instead, it's up to subclasses of ItemsControl - such as ListBox - to expose it. Oh, and those subclasses have to be provided by Microsoft because the functionality is protected internal, so you can't just subclass ItemsControl and expose this stuff yourself. :S
So you could use ListBox instead, possibly by subclassing it and changing its item container to something simpler than a ListBoxItem. Or you could just use ListBox directly and fiddle around until the ListBoxItems look the way you want them to (i.e. not selected).
HTH,
Kent