Ok you need to check for a conflict. I didn't read the post correctly lol
Click on 'start' in windows, then 'run'.
Type in msconfig and click ok.
The system config utility appears.
On the general tab, click on 'diagnostic start up', then 'apply' and 'close'.
When it asks re-start the machine.
The machine will boot up clean with sod all running silently bar essential system featues. Try the emulator.
If it works you have a conflict.If not go back to my earlier post about a rollback or damaged DLL.
Re-start your machine normally by starting msconfig again and choosing normal start up.
If you do have a conflict, open up the task manager and click on the processers tab. Shut down each process that is listed to your user account (ie your name), not ones listed under SYSTEM. After each shutdown try the emulator again.