Can't RhoMobile app on MW mobile device / emulator

Hello All

The problem is I can't start the simpliest application is created in RhoStudio.

When I do rake run:wm:device it copies files to device or emulator but doesnt start it.

After files are copied to device/emulator the message is

RET: Cannot find WMDC window to estabilish network connection to device emulator.

Then

RET: Starting application ...

RET: CreateProcess failed with Errorcode = 2

RET: FAILED

How to fix it?