This tip allows you to use your computer’s keyboard with the Windows Phone 7 Emulator instead of the soft keyboard on the emulator.
Fire up the emulator and place the cursor on textbox and you will notice the SIP (Soft Input Panel/virtual keyboard) which pops up from the bottom.
Press the key [Pg Up] to enable the keyboard of your computer to be used with the emulator. The language of the input will be shown on the top e.g. EN for English input.
To switch back to SIP, just press the [Pg Dn] key. on the computer’s keyboard, move the cursor away from the textbox, and gain focus on the textbox.