I have been using this for a bit now, and I must say that the updated version actually makes you feel like you are using a WP.  The PDC laptop has a touch screen on Windows 7 Ultimate, and makes for an excellent emulator!

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The wait is over; you can now download the Windows Phone Developer Tools CTP Refresh from the Windows Phone web site at http://developer.windowsphone.com. With this CTP, you can develop and test Windows Phone 7 apps on the RTM version of Visual Studio 2010 (VS2010).

There are several improvements in the CTP, including an updated Windows Phone 7 OS image for the Windows Phone Emulator. See more detail about the release at a Windows Team’s blog post here.