See this blogpost: http://davetimmins.wordpress.com/2011/09/20/geolocation-with-the-esri-silverlight-api/
Hmmmm.. I like it. The only issue I have is that I'm still in the world of Visual Basic so I'll have to convert it.
Second, if I'm connected to GPS, will it give me GPS location, or is it still network location?
I have a similar application going on in VB6. I have a GPS receiver attached to the laptop and through Microsoft Comm control I read the incoming string which is in NMEA format and parse it to get latitude and longitude values and then show it on my map...