Windowsphonehacker has successfully unlocked the latest set of tools released by Microsoft only days ago.
Microsoft released a new build of their Windows Phone 7 Development Tools yesterday, and as with previous versions, it's been completely locked down. Thankfully, similar to the previous version, it's been unlocked.
The ability to unlock an OS is a crucial step for any platform. Despite the circumvention, the jailbreaking community can be credited with helping to propel the iPhone into the mainstream by allowing new features and programs to the platform long before Apple made them available.
Here's the full demo of copy and paste on Windows Phone 7, using the latest unlocked emulator.