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Apps Tablet vs phone development

Hi, I am looking a purchasing a device and would like to know how much difference there is between tablet and phone development. If i buy a tablet is it going to make testing for a phone a real hassle, and vice versa.

For testing purposes, what do i need to look for in a device.?
Do i need v2.1 or is v1.6 fine?
Can any phone or tablet upgrade with out too much hassle?
Do i need a multi touch screen?
Should i grab a higher spec device or will a cheaper device do the trick.
Any other pitfalls i should be aware of.

Thanks
 
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