At PDC 2008 we got a nice Freescale JM badge board to test with Windows 7 and its Sensor API. I definitely wanted to try it, but didn't have the luxury to re-pave a machine just for this.
VirtualPC doesn't support USB (a lack that annoys me immensely, not only now, but also for Windows Mobile development), so I had to look for another option: VirtualBox. It supports USB. I decided to give it a try (VMware was on my list too, but when I saw their registration requirement for a trial version I balked).
Installed the x64 version of VirtualBox, and inside it the 32 Bit version of Windows 7. First stumbling block - the virtual machine additions. In default mode, they refuse to install on Windows 7 (too new). But you can help it see the "light":
The additions are required, otherwise no USB support (or easy network, but you could work around that one via emulating a different NIC).
Next, plug in the sensor development kit badge and tell VirtualBox to route it into the VM:
The "CMX Systems USB HID sensor demo for HC9S08JM devices" is what you are looking for. At least that's what Vista calls the device.
Now all you need to do is boot up your Windows 7 VM again and install the SDK from the supplied disc. Note that I achieved the best results by following the guideline at the end of the document entitled "Sensor Development Kit Driver and Firmware.rtf", to be found in the Documentation folder.
When done, you can try the MSDN reader demo (nope, Marbles not going to work inside a VM). As a proof, here is a screenshot of everything running in VirtualBox (yes, the light sensor works):
By the way, there is a MSDN forum Development with the Windows Sensor and Location Platform just for this topic. If you don't know what I was talking about, check out the session recording Windows 7: The Sensor and Location Platform: Building Context-Aware Applications.