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I have taken the Admin exams not the Development exams, but I think that the process is similar enough. My theory is that you take the exams with which you are most familiar. If you have more experience with development in R7, take those exams and then the R8 update exam.
With respect to preparing for the exams, there are 3rd parties out there that have practice exams that I have used for many years (on the Admin side). I have found the practice exams to be very good preparation for the actual exams and recommend them highly. It is an assumption (but probably a fair one) that the practice exams for Development are as helpful as the ones on the Admin side of the house. In my experience, it was very important to read the background material on the questions in the practice exam.