Argiris Kirtzidi (one of the developers behind Managed OGRE) modified Moonlight to run inside the Ogre3D engine. You can render Moonlight applications or XAML files inside Ogre3D.
We are merging his patches to make it simpler for Moonlight to be compiled by Windows users.
Update:For more details about how this was done, and how he modified Cairo to be hardware accelerated check Argiris's post.
Posted on 08 Dec 2008