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Silverlight enables local storage in an isolated area. This means that you can store files locally on the user's computer, but not in their normal file system. Microsoft sets aside a special set of files for Silverlight applications. It's almost like a private file system per Silverlight application. So each application has access to it's files, and only it's files. You cannot cross-access files between Silverlight applications, nor can you read/write to the user's normal file system.