Idea is to reference assemblies that contain WCF data contracts in silverlight application, and to do that you need to fool VS so it thinks assembly is a SL assembly, he describes this in detail here
http://www.netfxharmonics.com/2008/12/Reusing-NET-Assemblies-in-Silverlight
and its not so easy, here is what needs to be done
Just use the same ILDasm/Edit/ILAsm
procedure already mentioned to tell
the assembly to use the appropriate
Silverlight assemblies instead of the
.NET assemblies. This is an extremely
simple procedure consisting of nothing
more than a replace, a procedure that
could easily be automated with very
minimal effort. It shouldn't take you
much time at all to write a simple
.NET application to do this for you.
It would just be a simple .NET to
Silverlight converter and validator
(to test for assemblies not supported
in Silverlight). Put that application
in your Post Build Events (one of the
top 5 greatest features of Visual
Studio!) and you're done. No special
binary hex value searching necessary.
All you're doing is changing two well
documented settings (the public key
token and version).
Second solution is a file level solution , you use add link option on files that contain your required data contracts implementations to SL and make sure they only contain types that allow to build SL and dont reference a lot of external assemblies , usually those conditions should be met for WCF services & data contracts.
I can write more but it would be just the copy paste from that link