As you know, in Windows 7 Beta the bug which did impossible contained to debug appendices for Azure. The bug did not allow to start Development Fabric on Windows7. All it created the big inconveniences. The main recipe was to use the virtual machine with Windows Vista / Server 2008.
However, when Windows7 RC (7100 build) is released a situation has changed to the best and in new build Windows 7 this problem is eliminated and now it is possible to develop for Azure directly from Windows 7.