embedding xaml in windows forms application

In principle you can, but this is too difficult and not recommended. Compared to any hybrid opportunities, creating a decent WPF application would be much easier, with much better results.

WPF and Forms libraries have almost nothing to do with each other, and WPF has actually very little to do with Windows even though it is implemented for Windows, it's based on DirectX. Interoperability layers exists, but it's not so easy to use.

See http://msdn.microsoft.com/en-us/library/ms751797.aspx[^].

—SA