Yup! I’s unable to control my excitement when I downloaded and installed Window Phone 7 SDK and Developer Tools. In a hurry and skipping my dinner, I opened the first sample project – Silverlight for Windows Phone 7 and hit Run (F5).
Bhoom! I’s damn surprised to see the error:
Zune software is not launched. Retry after making sure that Zune software is launched.
Because I haven’t written a single piece of code! Instead I run the project as it is!
A keen and close look pointed out the issue:
I have set my target to Windows Phone 7 Device instead of Windows Phone 7 Emulator. All you have to do is to change the target to Windows Phone 7 Emulator.
That’s it. Now hit F5 and Run. 
I simply fall in love with Metro UI. What about you?
Start developing - http://create.msdn.com/en-US/