I didn't expect to see this kind of stuff demo-ed so soon after the Silverlight 1.0 and 1.1 announcements but Loke has the scoop with a video demo with Product Unit Manager Scott Holden:
Prototype video of Silverlight and Windows Mobile
Worth a watch - the UI looks fantastic, better than anything I've seen on mobile devices in a long while. Other highlights, is the media experience and the interaction/animations happening on the device.
Nice device being shown too - it is the Orange SPV e650 which a few people in the office are now carrying.
Maybe even Mr Moth will get on board the Silverlight fun bus when it goes to devices...