We're working on also creating the Picture Frame project using Windows CE - The Windows CE development tools ship with a "Virtual PC" emulator that will give you the ability to configure, build, download, and debug your operating system without needing any additional hardware.

The first step in building the Windows CE Picture Frame should be posted early next week... keep an eye out for the instructions !!

Mike Hall
Mobile and Embedded Devices Group
Microsoft
http://blogs.msdn.com/mikehall