The darker area represents the Margin; the lighter area represents the Padding.
<UserControl x:Class='SilverlightApplication3.MainPage'
xmlns='http://schemas.microsoft.com/winfx/2006/xaml/presentation'
xmlns:x='http://schemas.microsoft.com/winfx/2006/xaml'
xmlns:d='http://schemas.microsoft.com/expression/blend/2008'
xmlns:mc='http://schemas.openxmlformats.org/markup-compatibility/2006'
mc:Ignorable='d'
d:DesignWidth='640' d:DesignHeight='480'>
<Grid x:Name="LayoutRoot" Background="White">
<StackPanel Background="Gray">
<TextBox Background="LightGray" Margin="10" Padding ="10"
Text="Margin is outside, Padding is inside" />
</StackPanel>
</Grid>
</UserControl>
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