Anand just posted that Device Emulator V2 is now available as a standalone download (http://blogs.msdn.com/anandba/archive/2007/03/13/device-emulator-v2-is-live.aspx).
Congrats to the emulator team!
Two things made V2 particularly interesting to work on. First, is the number of code contributions from across Microsoft. I've lost track of all of the names, but Windows Mobile, Windows CE, and even Customer Support Services (CSS, formerly PSS) all made emulator and BSP changes. Second, we started coding before V1 was even out the door (in VS2005), and ran a double-speed product cycle, to align with Windows Embedded CE 6.0. While V1 targetted the Visual Studio user, V2 targetted both the CE 6.0 Platform Builder user (with KITL-over-DMA and the in-the-box BSP) and Windows Mobile 6.0 (with battery, backlight, contrast, expanded NOR flash, headset/carkit/speakerphone). We also took time to work on things that everyone cares about: raw performance in the JIT, with a wide range of performance features (http://blogs.msdn.com/barrybo/archive/2006/05/23/605314.aspx), Windows Vista support, and a bit more user-friendly config dialog. Of course, we fixed plenty of bugs from customer reports and from Dr. Watson logs you so kindly uploaded.
Please do opt into the Customer Experience Improvement Program when the emulator launches for the first time. The data collected directly feeds into the planning process for future emulator versions. It helps us understand simple things like how frequently configuration options like the COM ports are used, how often the config dialog fails to reconfigure, CPU speed, etc.