Basically, if I download the WP8 SDK, can I develop WP7 apps with it?
Or can I only create WP8 apps?
Thanks.
Unfortunately not, you'll have to download the seperate SDKs and use the workaround here: http://blogs.msdn.com/b/astebner/archive/2012/02/29/10274694.aspx, as far as I know.