Janete Perez has created a great series of blog posts on importing Photoshop files into Expression Blend. I have been apart of the Expression team for almost a year now and I have been working on the Photoshop Import feature, so these posts are especially interesting to me.
http://blogs.msdn.com/janete/archive/2009/05/27/photoshop-import-in-blend-3.aspx
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