We reported on this a week ago and sure enough, Microsoft held true as they released their updated version of MS Tag Reader for Windows Phone 7. With the tool now available, we can probably start using Tags here at WPCentral for links to stories, files, etc. Should be fun.
Overall, the program is quite nice and zippy. It can optionally use your location, which will be interesting to see how that is used. MS Tags can work on "mobile content, videos, music, retailers, contact information, social networks, promotions and more". Basically you just scan and the phone will "react" to what content is linked. Sounds cool, loved it in Windows Mobile.
First impression? Not bad but it doesn't have "live scan" like on Android, where the camera just scans the scene for the tag. Instead, you have to actually snap a photo. Also, pro-tip: use the zoom feature to center the tag; putting the camera near your monitor just won't work.