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MSmobiles recently showed how copy & paste functions are possible within the Windows Phone 7 Series emulator... if you have a keyboard with Ctrl, Shift, and arrow keys. Obviously a
hardware manufacturer could pretty easily add those to a slide-out keyboard. However, we're sure that Microsoft is waiting to implement a much more user-friendly method of copying and pasting text between programs. MSmobiles suggests that this is a feature of Windows, not Windows Phone 7 Series, however as you can see in our screen capture video below, the Windows Phone 7 Series emulator has its own paste buffer separate from Windows.
MovieMiguel.com