If you just need a quick, ported version of the supplied PHP code:
// Create the MD5 hash object.
System.Security.Cryptography.MD5 md5 = System.Security.Cryptography.MD5.Create ();
string password = "password";
string salt = "salt";
// Hash password and salt
byte[] passwordHash = md5.ComputeHash (System.Text.Encoding.ASCII.GetBytes (password));
byte[] saltHash = md5.ComputeHash (System.Text.Encoding.ASCII.GetBytes (salt));
// Combine password and hash.
string passwordAndSalt = System.Text.Encoding.ASCII.GetString (passwordHash) + System.Text.Encoding.ASCII.GetString (saltHash);
// Compute final hash against the password and salt.
byte[] finalHash = md5.ComputeHash (System.Text.Encoding.ASCII.GetBytes (passwordAndSalt));
See the System.Security.Cryptography.MD5 docs for more info.