Then with lots of search in Google , i found an interesting article in MSDN that states the following .
Visual Studio 2010 does not support mobile application development for versions of Windows Phone prior to Windows Phone OS 7.0 .
The article also goes on explaining on saying that Visual Studio 2010 supports only Windows Phone 7 development with the right tools/sdk installed on it .
Check my following blog posts on the Windows Phone 7 CTP Tools .
I also noticed that Visual Studio 2010 supports to migrate VS2008 project to VS2010. But this looks odd for the Smart Device Development ( Compact Framework ) .
It looks like the developers who are interested in developing applications for Windows Mobile and Windows Phone 7 have to use different versions of IDE ( Visual Studio 2005/2008 for Windows Mobile and Visual Studio 2010 for Windows Phone 7 Applications ) .
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