Avi Pilosof demonstrates how to apply transitions to the navigation by using the TransitioningContentControl.
Windows Phone 7 supports the built-in Silverlight Frame/Page navigation system, which is easy to use and maintain. Unfortunately, it’s not as slick-looking as the panorama navigation shown in all the phone demos.
Sooner or later there will be a few panorama implementations floating out there, but I still think that Frame/Page navigation has its place; firstly, not all applications suit the panorama concept (eg; master-details relationships), and secondly, it just feels like a cleaner separation of UI elements.