The Windows team said this Beta release represents the near final version of the tools for building applications and games for Windows Phone 7.
The release is expected to push efforts for the planned release of Windows Phone 7 later this year.
The team said that with the Beta release of the tools, developers can build apps with a “ship it” mentality.
Also made available is Windows Phone 7 JumpStart, a free virtual live class for developers interested in developing apps and games for Windows Phone 7.