If it's not important to display pdf within Silverlight app, you can try to open new window that would point to your pdf file (that isnt restrict file access policy).
You can access current document Uri using: HtmlPage.Document.Document
Uri
string pdfFileUri = HtmlPage.Document.Document
Uri.ToStri
ng().Repla
ce("MySLTe
stPage.htm
l", "FILES\myPDF.pdf");
then just HtmlPage.Window.Eval("wind
ow.open('"
+ pdfFileUri + "')");
or System.Windows.Browser.Htm
lPage.Wind
ow.Navigat
e(new Uri(pdfFileUri, UriKind.Absolute), "_newWindow", "toolbar=0,menubar=0,resiz
able=1");
that would open new browser window with your pdf file as content and won't apply to Silverlight restrictions on reading file system files w\o user action request.
As another solution >If you need to display PDF inside same window<, we can do a little trick:
Using IFrame within Silverlight Application (check
http://www.davidezordan.net/blog/?p=700 and RadHTMLPlaceHolder control <- one i preffer more) you can place pdf uri as src for iFrame and show it in there. It's not apply to policy restrictions as well, coz iFrame is kind of separate window.