I spent about three hours banging my head against the wall trying to figure out why my browser could connect to the Internet but the Windows Phone 7 emulator couldn’t, and if you find yourself in the same boat as me I thought I would spare you the trouble.
Are you seeing something like this when you try to pull up a web page in IE on the emulator?
If that’s the case, then you’re having network connectivity issues specific to the Windows Phone 7 emulator. There’s a guide to troubleshooting Windows Phone 7 emulator issues on MSDN, and it speaks to the root of the issue: your HTTP proxy settings.
If you’re like me, you like using Fiddler for testing network I/O when you’re trying to connect to RESTful services – Fiddler acts as a proxy and disrupts all network I/O from the emulator; leave it turned off while you’re working with the Windows Phone 7 emulator.
Thought I’d spare any other Fiddler / Windows Phone 7 using developers the trouble