The above images were composed with a ray tracer written completely in C#, based in part on the concepts covered in Based Rendering: From Theory to Implementation.
The ray tracer has been updated to support and generate Seadragon file structure and XML which can then be easily referenced by the DeepZoom control.
Support exists for tiles of size 256 or 512, with overlap fully supported.

Higher-resolution images are created for those portions of the image that have multiple reflections or refractions.
At the highest-resolution, there are 14 levels of images, which would be a bitmap of dimensions 16,384 x 16,384, for a total of 268,435,456 pixels.
A total of 889 images (256x256 in size) make up the final rendering, for a total of 58,261,504 pixels.
The debug text in the corner of each image identifies the level (0 stands for base, 256 x 256) and row/column of the tile.

The above scene consists of a checkerboard plane, a reflective and a refractive sphere.
"Zoom" is available for both spheres, up to level 6 (equivalent to resolution of 16,384 x 16,384). Areas on the checkerboard zoom until level 3 (2,048 x 2,048).
Overlap is currently set to 2 pixels.