At the Orlando Visual Studio 2010 Launch event, I did the session on Windows Phone 7, and one of the questions that came up was whether the emulator supported multi-touch. At the time, I answered that it only supported a single touch, but that is incorrect.
If you have a monitor that supports multi-touch, the emulator will accept up to four touch points (or as many as the monitor supports up to four).
My Acer tablet supports 2-point multi-touch, but I suspect I was having a driver issue when I was testing touch with the emulator. I’ve since re-tested and confirmed that the emulator does indeed support multi-touch, which is very, very cool.
So there’s a lot you can test with the emulator while we all await the arrival of the actual hardware later this year!