XDA-Developers forum member xda2_haseeb has managed to extract and run Android Emulator on
Installation instructions for standalone Android Emulator on Windows
1. Download Android Emulator v1.5 for Windows.
2. Extract the contents of the .rar file.
3. Now rename the extracted folder to "Android-Emulator".
4. Download the patched executable files from here.
5. Copy/Paste these patched files into the newly named “Android-Emulator” folder.
That’s it! You can now test and run the complete emulated mobile Android OS on your computer without having to download and install the SDK. You can even install Android compatible apps on it. Check out this link for more on installing apps and moving files on and off the phone. I have tested it on Windows 7 x64 and it works flawlessly on it. Now if only someone could come up with a way to install HTC Hero’s Sense UI on it!
Download Android Emulator 1.5 for Windows