I got this problem too and I consulted with my local rockwell rep and they managed to help me to resolve it. and now my emulator is working..
Basically it is a debuggy installation which create such issues.
To simplify here are the steps.
1.Installed studion5k emulator. (I believed all have done this step thus encounter ed this internal error)
2. Go to control panel/user account/change user account setting and choose setting "NEVER notify"
3.reboot window
4.Uninstall emulator program
5. Edit window registry (regedit)
DELETE the whole key and its sub:
HKEY_LOCAL_MACHINE\SOFTWARE\Wow6432Node\Rockwell Automation\VirtualBackplaneMonitor
6.reboot window
7.install emulator again.
8. Pray it worked for u too!
FYI i using virtual window7 thus actual window environment should work too.