It's a little annoying to have to deploy to the device every time to test multi-touch functionality, so I'm just wondering if the second finger can be faked. Obviously connecting two mice doesn't help ...
There is currently no support for this, but there are some options you can explore for this.
Jonas Follesø World of Software - Simulation of multitouch on Windows Phone 7 emulator
Software Development Kit for Windows MultiPoint
Multi-Touch Vista
Mick N MultiTouch Windows Phone 7. .