Hello Priya Iyer,
Attached is a sample project. Could you please modify it to reproduce your problem so I will be able to investigate it.
On a side note, I'd like to inform you that we've just released an online tool that allows you to reduce the size of your Silverlight applications. For more information, please visit http://blogs.telerik.com/blogs/posts/10-06-10/telerik_assembly_minifier.aspx
the Telerik team
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