I've tried MediaElement with a .ts file - its not interested (HRESULT: 0xC00D11B1).
The TS file plays with WMP no problems (Cannot seem to play it in graphedt though?)
I thought MediaElement was supposed to support what WMP supported?
Update: This is on Windows 7 by the way (apparently it has a slightly different media stack if that makes a difference, WMF etc)
Jeremiah Morrill is your man - http://wpfmediakit.codeplex.com.
This will not work in SL but will definitely play them on WPF proper.
WPFMediaKit does work but you need to install a MPEG-TS "source filter" to allow DirectShow to read from the transport stream container.
I used TSFileSource.
Also be careful on x64 vs x86... so far I have only managed to get it working when using all x86 components.
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