I\'ve installed JDK, Android SDK and Mono Android for Visual Studio 2010, I\'ve created an empty solution and I got the emulator up and running with Android 2.3.3 - so far so go
It is due to not enough space on the phone.
Check your build packaging In my case it was packiging all kinds of assets, psd, etc.. and the .apk file was huge and the phone did not have that much space