Well.. here's a quick Silverlight 2.0 test, so if you don't have the Beta installed... go do it now.

So this is a quick test to see how a clear zoomable image works out. Then again I don't have that strong a camera so it might not be doing much. Anyway the controls are simple right now, click to zoom in, SHIFT key + click to zoom out, click and drag to pan around the image. Just give it a try and see.