First we need to download this free app from Microsoft:
Device Emulator Manager
http://www.filefactory.com/file/2af9b7/
First run the SmartPhone emulator, then execute the Device Emulator Manager, and you will see the emulator listed:
Then right click on the listed emulator and select "cradle":
That will start the ActiveSync on the computer (you need to have ActiveSync installed):
From the ActiveSync you will be prompted to access as a guest, and then you can explore the SmartPhone contents:
Then navigate to Storage/Windows/Start Menu/Accessories and paste your app:
Now in the SmartPhone emulator select "Start-More-Accessories" and you will see your app listed:
Click on the central SmartPhone button to execute it