Hi Rejish Rajan,
Could you please send us your sample project so I will be able to help you better?
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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