I\'m developing a project using the MVVM pattern in WPF.
One of the key benefits to MVVM is maintaining clear separation between business logic and presentation.
<The actual question is ... what are assembles for?
They are a way to separate logic making it unavailable to other code unless you add a reference, so in fact they are a way of hiding parts of code from other parts.
Given this purpose and the way you are using it I would say that you're doing it right.
Having said that I find much easier to verify that the Views do not have any code behind in code reviews and keep the views in the same assembly. Less projects = faster compile and load times.
I don't see any spcific issues with this approach besides the general pro/con for using few/many projects.
We use this kind of separation in all of our products because it helps us to see if any code violates against the UI - business logic separation.
Most times we do it the same way as you have suggested:
Sample.Presentation.exe (Contains all the WPF stuff, thin assembly)
Sample.Applications.dll (Is responsible to the application's workflow, here are all ViewModels)
Sample.Domain.dll (Here are the business rules)
We don't have encountered any issues yet and I don't expect to see any problems in future.
2 weeks now with my Model & View Models in a dll, my xaml in an exe and no problems whatsoever.