64-bit system is recommended, you have to do extra installations in 32-bit system to make azure works, please refer to this article and check if some hotfixed has been installed in your machine (In "System requirements"):
Did not get some more details exception message during the compute emulator shutdown? For example, create a simple hello world application in local and run it (Set Azure project as the startup project). I believe more information can help us fix this problem.
It looks like a strange problem, you compute emulator could not work normally, as far as i know, Windows Azure emulator will use ports 12000-12002, would you like to check if these ports was already in use? If so, please try to modify DevFc.exe.config
file with other ports:
Determine if any of the following ports are being used by a non-Windows service: 15095, 15096, 15097, 15098, 15099, or 15100.
Navigate to the installation directory of the Compute Emulator. By default the Compute Emulator is installed at C:\Program Files\Windows Azure Emulator\emulator\devfabric.
In the DevFc.exe.config file, locate the add port entry that contains the conflicting port value and modify the value to use a non-conflicting port. The DevFc.exe.config file entries that can be affected are:
<add key="ManagementServicePort" value="15095" />
<add key="RepositoryServicePort" value="15096" />
<add key="AgentCallbackPort" value="15097" />
<add key="AgentPort" value="15098" />
<add key="PxeResponderPort" value="15100" />
In the DfService.exe.config file, locate the dfservice element and modify the ManagementServicePort or RepositoryServicePort attribute to use a non-conflicting port.
I experienced the exact same problem you had and spent 4+ hours trying to figure it out and finally came across the problem.
My WCF RIA Services was out of date, by quite a bit. I updated to the same version my colleagues were using(since they weren't having this issue). My version was 1.0.numbers. and I updated to version 4.1.60144.0 and everything started working