In solomon 7 if we use the sdk tool and customize to add new screens, tables etc., will this be automatically upgraded when we move to SL2011 or is this a manual work?
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Manual work. No SDK programs are automatically updated.
Though you do have to do "something" to make Dynamics SL 7 SDK programs work after upgrading to Dynamics SL 2011, that "something" is extremely minor (assuming you have the source code). You just open the project in Visual Studio and recompile it. That's about it.
The only caveat would be if you program referenced any tables that had structural changes between versions 7 and 2011 but I think there were very few of these and even at that, just swapping in the SDO files for those tables into your project will usually be all this is necessary.
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