Windows SDK Configuration tool can be used to set the Windows 7 SDK as the “current” SDK for MSBuild and VCBuild. This’ll update Windows 7 SDK build environment and Visual Studio 2008 build environment to use Windows 7 SDK headers, libraries and tools. You can also use this tool to switch it back again. However, configuration tool doesn’t set DirectX SDK paths. If you’ve installed DirectX SDK and wish to build an application in Windows SDK command line build environment, or in Visual Studio build environments, you’ll need to set VC++ directory paths manually. If you wish to build with Windows 7 headers and libraries, you should ensure that directory path for this content’s found first, before DirectX SDK content.

Full Article: Windows SDK blog