Read original post by Igor Ralic at Igrali
There I am, all happy and excited about the latest Windows Phone 8 SDK released today. And so I downloaded it (took quite long, I am probably not the only one in the world who wanted it immediately :)) and installed it. Opened Visual Studio 2012, created a new template project, tried to run it in emulator and… error occurred. What? Windows Phone 8 emulator wasn’t able to create the virtual machine. Here are some of the steps that helped people online and myself to get it fixed.