I am writing an XNA game for Windows Phone. I recently upgraded my Windows Phone SDK from version 7.1 to 7.1.1. You can read about the details of the SDK patches here, but this is the summary:
Windows Phone SDK 7.1.1 Update offers developers tools and options to help them develop and test applications for 256-MB Windows Phone devices.
After performing the upgrade my game now renders with major graphical corruption when running in the Windows Phone Emulator.
Here is what it looked like before and after:


On actual hardware, it runs fine.
I have also tested this with the most basic sample apps, and the same issue occurs.
- Rolling back to version 7.1 of the SDK does fix the issue.
- Re-installing version 7.1.1 of the SDK does not fix the issue.
- Updated my computers drivers does not fix the issue.
- Upgrading to version 7.8 of the SDK does not fix the issue.
I am not able to upgrade to version 8.0 of the SDK because that is Windows 8 PC only (which I don't have).
I am at a loss as to what else I can try. Any ideas?