If you are developing embedded applications (such as embedded Visual C++) on a relatively new computer you might get frustrated; it won't work. I received the same messages on Windows Vista. (See
here for Windows Vista, Visual Studio 2005 and smart devices) I switched back to XP from Vista after the errors. Then, I discovered that XP didn't help but the following fixed the problem. I didn't try it on Vista but probably would help.
SYMPTOMS
You install Microsoft Windows CE 4.x Emulator on a computer that is running Microsoft Windows XP Service Pack 2 (SP2). The computer has Data Execution Prevention (DEP) hardware. You receive the following error message when you restart your computer:
Devices or applications disabled 'Virtual PC/Windows CE Emulator' will cause Windows to become unstable. Windows has prevented these drivers from loading.You may also receive the following error message when you try to start Windows CE 4.x Emulator:
Emulator for Windows CE One or more files from the Emulator for Windows CE installation is missing. Please reinstall Emulator for Windows CE and try again.Solution:
http://support.microsoft.com/default.aspx?scid=kb;en-us;891667
