Windows phone emulator is unable to create differencing disk

I am trying to run windows 8.1 emulator and  I am getting this error:

"Windows phone emulator is unable to create differencing disk
A virtual disk support provider  for the specified file was not found"

vhd.png
romeiovasuAsked:
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Mohammed KhawajaManager - Infrastructure:  Information TechnologyCommented:
Try the following command:

C:\Program Files (x86)\Microsoft XDE\8.0\xde.exe" /vhd "C:\WP8\Images\Flash.vhd" /name WP8-SDK

Also note that the VHD cannot be compressed or encrypted in order for it to work.
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romeiovasuAuthor Commented:
this should be the image path:
C:\WP8\Images\Flash.vhd


I have it under
C:\Program Files (x86)\Microsoft SDKs\Windows Phone\v8.1\Emulation

I have checked the proprieties of the folder and it is not compressed or encrypted

Thanks
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