I was so happy today that I have been finally able to install Windows Phone 8 SDK and try it a bit. I installed fresh new installation of Windows 8 Pro into my virtual machi
Solved the problem by uninstalling an older VPN client from the machine. It turns out some VPN clients might have compatibility issues with Windows 8. After uninstalling VPN client I was able to run the emulator without issues (of course after making sure Hyper-V was installed and enabled on the machine)