Right now I am "cheating" and using the following:
<Rectangle x:Name="rectangle" Stroke="SlateGray" 
   Width="{TemplateBinding ActualWidth}" Height="{TemplateBinding ActualHeight}" 
   HorizontalAlignment="Stretch"  VerticalAlignment="Stretch"
   SizeChanged="rectangle_SizeChanged">
</Rectangle>
<x:Code>
  <![CDATA[ private void rectangle_SizeChanged(object sender, SizeChangedEventArgs e)
     {
        Rectangle r = sender as Rectangle;
        r.RadiusX = r.Height / 2;
        r.RadiusY = r.Height / 2;
     }
    ]]>
</x:Code>
This x:Code works perfectly at run time and accomplishes what I want. but I really want it to change instantly on the Artboard by doing something like:
<Rectangle x:Name="rectangle" Stroke="SlateGray" 
   Width="{TemplateBinding ActualWidth}" Height="{TemplateBinding ActualHeight}" 
   HorizontalAlignment="Stretch"  VerticalAlignment="Stretch"
   RadiusX=".5*({TemplateBinding ActualHeight})"
   RadiusY=".5*({TemplateBinding ActualHeight})"> 
</Rectangle>
But there is no way to include this .5*(...) Is there another way to accomplish this?