The emulator is actually a virtual machine, so we are talking about a vm inside a vm, this requires support for nested Hyper-V, which afaik is planned but not implemented yet although Windows doesn't actually support its Hyper-V being nested, also VMWare Fusion already supports this exprimentally, if you are so desperate, but don't count too much on this feature because, as I said, Windows doesn't support this well.
The KB you linked talks about Phone Emulator 7, which is actually an emulator and not a virtual machine, Phone 8 Emulator is a virtual machine, complain to MS, it was their decision.
Last edited by a moderator: Nov 1, 2012