Silverlight supports AES encryption through the System.Security.Cryptography.AesManaged class. So you could encrypt the data yourself, but then you would need to decrypt it yourself on the server side.
However, Xceed Real-Time Zip for Silverlight also support WinZipAes encryption, via the Zip format. So you could use this to create an encrypted zip archive that is constructed on the fly, as the stream is feed to the library, and send the file to the server with the help of the Upload library. The server will end-up with a zip archive, that you can simply unzip.
André
Software Developer
Xceed Software Inc.