Problem
It took me some time to find a solution for the following error message while starting the Windows Mobile Device emulator (the one supplied with Visual Studio 2005):
Device Emulator
Error: Could not read save-state file.
The problem probably is caused by the fact that I didn't properly shutdown the device emulator while it was saving the save-state file.
Resolution
The solution is to remove all save-state file. But where are they located?

I used the FileMonitor application of
SysInternals to find their location:
drive\Documents and Settings\your name\Application Data\Microsoft\Device Emulator
Simply delete all files in that directory and the problem will vanish. Just like all your save-state files
