Along with Expression Blend 2 came a new functionality for embedding fonts in your project. The problem is that this results in a heavier than expected .xap file, especially noticeable in a tiny little project.
I had in mind this very simple Silverlight Loader (to use as a splash screen) that contained one word that would slide back and forth. I created a TextBlock and embedded one of my favorite fonts to try; The result was a 59k .xap. In order to not have to embed any fonts in the project I converted the text to paths... I'm lying. I did it to better achieve the animation I desired.
Before doing this I prefer to modify the text to the right size although every modification is possible later as well.
Select the TextBlock and right-click or Object/Path/Convert to Path. Then you can separate the letters to be able to move each letter independently: select the path, right-click or Object/Path/Release Compound Path but then you need to fix the letters that form loops like A or O because they become two different paths (see image below). To do so select the two paths that form one letter, right click or Object/Combine/Exclude Overlap.
I especially like that now the text can have all the attributes of a regular path so the graphic rendering has the potential to be more sophisticated. The top text is a TextBlock while the middle one is the same converted to path. I left the O's without excluding the overlap to show what loopy letters look like right after being converted to path. The bottom row shows a few variations of what can be achieved with text as paths in Expression Blend 2.
After deleting the Fonts folder from the project I obtained 17k instead of 59k (wink!). You can see the result on Mashooo.com for 2 seconds while the games thumbnails are loading.