In this tutorial, Jesse Liberty explores in details
tombstoning,
multi-tasking and the entire
WP7 application life cycle.
Source: Jesse Liberty's Blog
The guiding model for the entire lifetime of an application, from launch to termination, is called the Windows Phone Execution Model. It is designed to provide a responsive system, at all times. The strategy to accomplish this is to avoid having two or more applications continuing to run in the background, competing for resources, slowing the foreground application and draining the battery.