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A 7.1.1 update to the Windows Phone SDK has just hit Microsoft's servers today with tools tailored for Tango's lowered memory support in tow.



From Engadget:
According to the company's Windows Phone Developer Blog, this refresh "doesn't add much in the way of new features to [the] WPSDK," mostly addressing emulation for 256MB handsets, compatibility for Windows 8, a patch for Visual Studio, bug fixes for the Advertising SDK, additional language support and an ability for IntelliSense to switch between RAM configurations.
  Microsoft releases update to Windows Phone SDK, adds support for 256MB devices