Visual Studio Express is a free version Microsoft makes available so it isn't like you have to buy Visual Studio. Here's a good tutorial on writing a quick Windows Phone 7 app using VS Express: http://weblogs.asp.net/scottgu/archive/2010/03/18/building-a...
What is the difference between free and paid version of VS? My internet speed/prices doesnt allow me to watch videos online, or download such big software as VS, but I will soon go back to uni in Singapore, so I am starting to think what should I do there in order to earn some cash...
The Express versions are not designed for multilanguage projects. For example, in the paid versions of VS, you can add C# and C++ projects to the same solution. You cannot add a C++ project to a Visual C# Express solution.
The free version doesn't allow add-ons to be installed in the IDE. I think that's about it. The free version does allow you to make commercial apps, contrary to some postings I've seen about it.