Hi Silverlightfreak,
I have put up a ChildWindow tutorial over at Silverlight Tutorials on how to create a ChildWindow in Silverlight and how to hook it up into the app so that you can show and hide it.
The tutorial is more from the programming angle and the popup isn't anything special but it does the job and I am sure you or anyone with some Blend experience could create a nice interface 
Here is the Xaml of the ChildWindow. It allows for quite a bit of customization. One thing that is built into the ChildWindow is that it blacks out the background while the popup is visible.
Code:
<controls:ChildWindow x:Class="SilverlightForums_ChildWindow.PopupWindow"
xmlns="http://schemas.microsoft.com/winfx/2006/xaml/presentation"
xmlns:x="http://schemas.microsoft.com/winfx/2006/xaml"
xmlns:controls="clr-namespace:System.Windows.Controls;assembly=System.Windows.Controls"
Width="250" Height="200"
Title="PopupWindow">
<StackPanel x:Name="LayoutRoot" Orientation="Vertical">
<TextBlock x:Name="Title" HorizontalAlignment="Stretch" VerticalAlignment="Center" TextWrapping="Wrap" />
<StackPanel Orientation="Horizontal" Margin="30,50,0,0">
<Button x:Name="OK" Content="OK" Width="75" Height="23" HorizontalAlignment="Right" />
<Button x:Name="Cancel" Content="Cancel" Width="75" Height="23" HorizontalAlignment="Left" />
</StackPanel>
</StackPanel>
</controls:ChildWindow>
Download the tutorial and I am sure it will make sense to you. If there is any questions then feel free to ask.
Thanks,
Al
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