Windows Phone Phone Capabilities used by Application?

Capabilites are detected using static analysis when your xap is submitted to the marketplace.

You can check your used capabilities with the free capability detection tool supplied with the second Mango SDK beta. If you use location without defining it at the WMAppManifest. Xml, the user will get a "Access denied" message and your app will throw an UnauthorizedAccessException.

Afaik there is no possible way to circumvent this behaviour. It is meant as a security feature to warn users before they install a app so they can check on marketplace what features the application will want to use.

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