Andy Beaulieu has created a new Windows Phone 7 sample game called Shuffleboard which demonstrates physics, gestures, perspective transforms, multitargeting, sound and GPU acceleration.
This Shuffleboard game was created as the basis for a Coding4Fun tutorial, which will be available soon on the C4F Website. I don't want to spoil the fun for the official tutorial release so I won't go into much detail here, but this demo should be helpful for folks wanting to quickly create physics based games for the upcoming Windows Phone 7 devices.