8052 has
Code Memory
Internal RAM
External Ram

Code does not run out of RAM, it is not a PC

You Need to set all Code to emulator Make sure you emulator has enough memory.

for the External RAM, set it all to target to start with. You could set it all to emulator if you have no memory mapped peripherals.

Set the Clock to target.

Set Emulator to ignore external resets.

You can adjust the settings latter if needed.