It can be done, but is not recommended and definately isn't best practice.

>I picked up this book
>http://www.amazon.com/Windows-Presentation-Foundation-Unleashed-WPF/dp/0672328917/ref=sr_1_1?ie=UTF8&s=books&qid=1251319032&sr=1-1
>
>On page 40 is this example:
>
>

><Window xmlns="http://schemas.microsoft.com/winfx/2006/xaml/presentation"
>	 xmlns:x="http://schemas.microsoft.com/winfx/2006/xaml">
>
>
><Button Click="button_Click">Ok</Button>
>
><x:Code><![CDATA[
>	void button_Click(object Sender, RoutedEventArgs e)
>	{
>		this.Close();
>	}
>]]<>/X;Code>
></Window>
>

>
>This is a click event defined inside an XAML file. As I said, this would get really unmanagable very quickly.