Apply the sql updates to your database that come with the emulator code. Assuming you downloaded PEQ 1589 (I think that's the old number. There's a 1667 database available now) you would need to apply any with a number greater than that. They are in the utils/sql/svn directory.
The one in particular that is most likely to fix that one problem is 1618_zone.sql.
If that isn't it, look in the logs that the emulator creates in the logs directory for errors that will give you clues on where to troubleshoot next.
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