Windows Phone 7 Emulator
Microsoft release a emulator for user to try it on ur own pc.
Step to run the emulation:
You must install Microsoft's Visual Studio 2010 Express for Windows Phone CTP from here (the process requires system reboot).
Download this image file.
Unrar the downloaded bin into C:\Program Files\Microsoft SDKs\WindowsPhone\v7.0\Emulation\Images\ .
Go to C:\Program Files\Microsoft XDE\1.0\ and find the XDE.exe. Right click on it and then select "Create Shortcut" (you may be asked to save that shortcut on the desktop).
Go to the properties of your new shortcut and modify the Target field as this: "C:\Program Files\Microsoft XDE\1.0\XDE.exe" "C:\Program Files\Microsoft SDKs\WindowsPhone\v7.0\Emulation\Images\WM70Full.bin" .
Run the shortcut and be patient.
Note that 64-bit Windows users must select Program Files (x86) folder instead the original Program Files.
For more information click here
Great sharing. I think this really helps and attract the programmers.