In this post, Charles Petzold discusses the good and the bad sides of the manipulation events in Windows Phone 7 Beta.
Always start with the good news: The good news is that the Manipulation events in the July beta of the Windows Phone 7 development tools no longer have the orientation problem I discussed in my blog entry Basic Manipulation Event Handling in Windows Phone 7 (at least with translation). You can flip the phone emulator sideways and translation coordinates don't need to be finagled. More good news: I am now able to get the emulator to recognize two fingers on my two touch screens, so I've been able to experiment with scaling as well as translation.
Other than that, I'm still not seeing behavior that feels correct to me, based both on my familiarity with theManipulation events implemented in the Windows Presentation Foundation, and the degree of work necessary to get meaningful information from the WP7 implementations.