If you want to use the ASP.NET Authentication Service with your Windows Phone 7 (this is quite similar if you want to use it with Silverlight), just create a standard Windows Phone project in Visual Studio 2010 :
Once this is done, add an empty web test project :
Create a new WCF service in this Web Application :
Name it AuthenticationService.
Remove the auto-generated Code-Behind file and Interface.
Edit the .svc to rely on the AuthenticationService (more info) provided by Microsoft :
Edit the Web.config or use the WAT (Web Site Administration Tool Security Tab) to enable the Authentication Service and to create some users. Here is how my Web.config file looks like :
Once this is made, you can reference this service in your WP7 application and start to use the authentication mechanism :
And the result is :
Or :
You can download the sample here
I created a user Spiderman with a password Spiderm@n