Chris Anderson's AvPad (the one before the XamlPad) did have some MDI - like windows. I think he wrote his own window manager, and basically the child windows were just a bunch of avalon windows that he was managing (showing as child) on the main window.
There is no true MDI support (atleast from the recent builds and blogs, newsgroups)... though I could be wrong (and I really want to be wrong
)
Another option if you truly need a MDI based app (when working Avalon) is to use winform interop and host your "child" windows inside of an Winforms based app... I know this may not be pretty, pure avalon, and can cause tons of other problems... The lack of MDI support from the outset was one of the reasons we are working on our next generation application (earlier ones were in old c++ legacy codebase) using Windows Forms (.net 2.0) and not Avalon. Hopefully WPF V2.0 will be better .....