To Set Up the Windows Mobile Emulator's Networking:

• Install the vmNet Driver (On the 463.html Page)
• Open Up Device Emulator Manager (Visual Studio -> Tools -> Device Emulator Manager
• Select the Desired Image and click Actions -> Connect
• Select the Desired Image (again) and click Actions -> Cradle

If ActiveSync finds the Device, You are done. If Not:

• Open ActiveSync
• Click File -> Connection Settings
• Check Allow Connections from One of the Following
• Select DMA from the Dropdown and press OK

Links:

ActiveSync
Windows Emulator Networking Drivers
Microsoft Device Emulator 2.0 Beta - CTP