You've got it right.

It also makes it easier to do Separation of Concerns. Keep the functionality out of the actual UI.

>it is my impression that the idea is to have the presentation stuff in XAML and there are design tools to make that very graphic and interactive and the XAML only has to be fiddled for tweaking, much as Dreamweaver takes care of HTML. and then the "code behind" handler stuff is C# as usual. Sounds pretty logical actually, since graphics can be handled without the contraints of "programming" and programming can be done without the constraints of interface. I'm not too deep into it yet, but I think I can see the reasoning behind it.