This is how I set images in Silverlight:
Public Sub setImage(ByRef img As Image, ByVal nameWithExtension As String, ByVal uriKind As UriKind)
If uriKind = System.UriKind.Relative Then
img.Source = New System.Windows.Media.Imaging.BitmapImage(New Uri("/PortalSilver;component/Images/" & nameWithExtension, uriKind))
Else
img.Source = New System.Windows.Media.Imaging.BitmapImage(New Uri(nameWithExtension, uriKind))
End If
End Sub
I almost always use Absolute URIs.
It was a cross-scheme restriction between HTTP and HTTPS. Luckily, dropbox allows HTTP protocol.