"XAML is a declarative markup language. As applied to the .NET Framework programming model, XAML simplifies creating a UI for a .NET Framework application. You can create visible UI elements in the declarative XAML markup, and then separate the UI definition
from the run-time logic by using code-behind files, joined to the markup through partial class definitions. XAML directly represents the instantiation of objects in a specific set of backing types defined in assemblies. This is unlike most other markup languages,
which are typically an interpreted language without such a direct tie to a backing type system. XAML enables a workflow where separate parties can work on the UI and the logic of an application, using potentially different tools.
When represented as text, XAML files are XML files that generally have the
.xaml extension. The files can be encoded by any XML encoding, but encoding as UTF-8 is typical." [MSDN
XAML Overview (WPF)]
Added "Community Resources"section and a few links within.
Cross-linked from this blog post: blogs.msdn.com/.../featured-article-windows-workflow-foundation-wf-overview.aspx
Thanks to Esref and Luigi!