The Windows Phone emulator requires Hyper-V, which requires a version of Windows Pro. This is probably why you cannot start your emulator.
As I wrote in a comment, I heard about VirtualBox and the ability to run WP Emulator on it. Some useful links: another question on SO , VirtualBox forum , video . I'm not sure how this will work (and if) since I have not tried this.
IMO I would follow the comments of WiredPrairie - upgrade or buy an additional phone.
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