Is there a way to get Windows 7 to work with VS 11 Beta?
Now they have a fix. Cm...
http://windowsteamblog.com/windows_phone/b/wpdev/archive/2012/03/26/wpsdk-711-now-available.aspx
and
http://www.microsoft.com/en-us/download/details.aspx?id=29233
It seems like the best workaround for WP7 dev on Windows 8.
This is currently not supported.
VS11 is currently in beta to provide testing and familiarity with the new version. It exists to allow you to "prepare for the next generation of development." It is not intended to be used as the primary development environment for older technologies.
UpdateMicrosoft has verified this at http://windowsteamblog.com/windows_phone/b/wpdev/archive/2012/03/05/windows-8-and-the-windows-phone-sdk.aspx