Q. Can you develop for Windows Embedded Compact 7 on a Windows 8 System?

A. Probably is OK
I upgraded my x64 development system.
It required a couple of drivers removed and MS Security Essentials.
Upgrade went OK.

I was able to then run VS2008 as admin, open an existing Compact 7 project and build it.

Need to now check that the networking required for deployment works etc.