Before creating silverlight application. Create seprate soltion for keeping large number images.Application performance will increase. also maintaining the application will be easy.
Step 1:
Create one silverlight application.
step 2:
Create silverlight class library.The name of the project solution is "Resource"
step 3:
maintain all the images under "Resource" library.
step 4:
Add the "Resouce" reference to silverlight application.
step 5:
Bind the images in to silverlight application.
Example
like this:<image source="Resource;component/picture/winter.jpg>
"Reource" is Assembly or application name.
Picture is folder name