The DeviceEmulator 2.0 Community Tech. Preview just went live, at http://www.microsoft.com/downloads/details.aspx?FamilyId=13F5DE85-30CD-4506-9C5B-A2068FA1EE9E&displaylang=en.
V2 has:
The V2 CTP installs side-by-side with the V1 CTP and Visual Studio 2005 emulators, and is backward-compatible with V1. If you wish to use the V2 CTP from Visual Studio, the readme.rtf file explains how to do that. The same process can be done to revert back to the original DeviceEmulator if you run into a blocking problem with the V2 CTP.
Enjoy!
Barry (and the DeviceEmulator team)