Trouble starting Pocket PC Emulator without network nor Internet connection?

When Platform Manager cannot connect to Pocket PC emulator and hangs on "Establishing platform manager connection to device" such as on this screen:
Establishing platform manager connection to device

Or You have trouble starting EmuASCfg command from Pocket PC 2003 SDK with error

ERROR: Unable to attach to specified device.

ERROR: Unable to attach to specified device.

You have to connect Your developement PC to Network/Internet connection. Dial-up does not always work. If You have trouble creating network connection You have install loopback device that will emulate network ethernet card. Complete solution description can be found on Microsofts support page:

How to install the Microsoft Loopback adapter in Windows XP

This should solve the problem. If it does not work please reinstall SDK because something is wrong with platform manager configuration