I intend to develop a screen recording software. Which is something similar to Microsoft's Live Meeting
Is it possible to write such App using Silverlight ?
P.S, the reason why I prefer is Silverlight is because of it's X-Platform support.
Silverlight itself does not support screen grabs, so to get it working you would have to go outside of the Silverlight's sandbox.
With Silverlight 4 you can call external automation object (COM) to get screen shot and pass it to the application. Downsides for this approach are: requires elevated trust, windows only and requires additional install step.
Silverlight 5 will have support for P/Invoke and that should make things a bit easier. But that still leaves Mac out of the picture. In general I would say it is not worth doing it in Silverlight. Consider using .net + moonlight if portability is important to you.