High Level Shading Language (HLSL) is a language developed by Microsoft that allows you to create C-like programmable shaders for the Direct3D pipeline. DirectX provides a compiler to compile the HLSL down into GPU assembly code. HLSL programs come in three forms: vertex shaders, geometry shaders, and pixel shaders. WPF 3.5 SP1 will offer developers the capability to implement custom HLSL pixel shaders. A pixel shader performs per-pixel processing such as texture blending, lighting model computation, and per-pixel normal and/or environmental mapping.
Limitations are placed upon HLSL programs based upon the pixel and/or vertex shader model version (i.e: Pixel shader V2.0 is instruction limited to 96 total instructions, 32 texture and 64 arithmetic instructions). For more information on HLSL, the MSDN Library entry serves as a good reference tool.
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