Your application requires -
Pushing location data to an online service (a WCF service, for example) while plotting the data on a Bing map in your Windows Phone 7 application
You require your online service to push data to your Windows Phone 7 application.
For # 1, you can use Location services in your Windows Phone 7 application and use WebClient/HttpWebRequest to update an online WCF service. Note that you need to disable the lock screen (after asking permission from the user) while your application is running. For # 2, you can use Push Notifications in your application. When the application starts, you can setup push notifications (after asking permission for the user). While the application is running, toast notifications can be sent to the application. You may also setup your application to receive tile notifications when the application is not running.
If you are interested to find out more about Location Services, Bing Maps, Push Notifications and building WP7 applications, have a look at the list of resources I maintain here. I hope this will help you in building your application!
indyfromoz