When I deploy my game (which uses XNA/C#) from Visual Studio to a windows phone 7 device it goes to the applications area rather than the xbox live sub directory (if I can call it that?). I know this isn’t meant to be like this because sample XNA WP7 applications deploy to the xbox live sub directory.
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Check your game’s WMAppManifest.xml file. Make sure the
Genreattribute under theAppelement saysApps.Gamesand notApps.Normal.