Just a few hours ago, the Windows Phone Developer Tools Update was released by Microsoft. This update is specifically for Windows Phone application developers to allow them to build apps that are ready for the upcoming Windows Phone OS update. After installation of the tools update, you can test copy and paste functionality on the (also updated) emulator.
In order to start working with the updated tools, you will need to download the Windows Phone Developer Tool update and a separate Visual Studio 2010 update. Also make sure to read the Release Notes for the update. The order of installation for the separate tools is not important but you have to install them both. A little more background information about the latest WPDT update can be found on the Windows Phone Developer Blog.
It is expected that all existing apps that are already published in Marketplace will continue to work, both on phones that will be updated to the new version of the OS that will be available later, but also on phones that are not updated. To show the new copy and paste feature of Windows Phone 7 in action I have created a small application that takes a URL and allows that URL to be copied in Internet Explorer on the Windows Phone Emulator. To see this little application in action, just take a look at this video.
