Michaels sugestion is excellent, if you are not looking at producing a lot of units. The Cygnal debugging environment is supposedly very good and at $99, you will not find anything cheaper. The problem is that when you got to production, you will find the chips very expensive.

If you are looking for an ICE (you use a much abused word 'emulator'), here are a few suggestions.

If you can afford (~$5000 + ~2000) per device you want to emulate) it is the NoHau.

If you want the cheapest good one it is the PDS51 from Philips, but here again, you must buy a 'pod' (~$200 very reasonable) for each derivative you want to emulate. Of course you can only get pods for Philips derivatives, but I, for one, emulate with a Philips chip and produce with a Winbond without any problems.

My choice is the CEIBO, it has the advantage of not using bondout chips in most cases. If you want to emulate another chip, you just pop the chip in the emulator out and press the one you want to emulate in.

Erik