We're pleased to announce that a version of Seadragon Ajax is now available in source code as part of the ASP.Net Ajax Control Toolkit. This is distributed under Ms-PL, the open source compatible Microsoft Public License (http://www.opensource.org/licenses/ms...).
You can find the ASP.Net Ajax Control Toolkit here: http://www.asp.net/ajax/AjaxControlTo...
Because this is released under Ms-PL, you can do pretty much anything you want with it: host it on your own site, modify it in any way you choose, or re-distribute it with your own custom solution. If you come up with some great enhancements, you can also contribute back to the open source project on Codeplex.