There is a new MSLabs site that lets you upload your own photos and it creates Seadragon (e.g. DeepZoom) photos from them. It uses Silverlight 2 to display the photos so you can zoom in and out int he different resolutions. Its a nice example of a simple use of the MultiScaleImage control in Silverlight 2.
The only thing that isn’t clear yet is whether they will let us use the Seadragon’d photos in our own apps. Maybe soon!