The Microsoft Device Emulator 1.0 is a standalone version of the same ARM based Device Emulator that ships as part of Visual Studio 2005. The standalone emulator is intended for situations when you want to demonstrate or test your application on a computer that does not have Visual Studio 2005 installed. In addition, we are offering the Windows Mobile 5.0 MSFP operating system images that you can use with the Device Emulator. The NB0 file contains an OS image of a Windows Mobile Device. nb0 files can be opened with DeviceManager.exe or dvcmumanager.exe (Device Manager).
You can store configuration information in the so called .dess file (Device Emulator Saved State) files. So the nb0 file only contains the OS image and the .dess file contains the configuration settings (installed programs etc. in the OS image).