My issue was partly caused by also installing Visual Studio 2010 Ultimate - it seems theres some slight compatibility issues between the CTP (Visual Studio 2010 Express) and Visual Studio Proper.
However I'm still struggling a bit on my home PC and have to use the following work around:
I deploy the app first (right click on the solution, deploy) - nothing appears in the emulator at this point.
Then when I run the app in Visual Studio in the usual manner it now appears in the emulator and I can debug etc.
I have to use this deploy then run process to see any changes. If I just run then I don't get the latest changes - but at least the error discussed has stopped!
I've noticed that the emulator gets a lot more sluggish doing this, when I'm at work and just pressing the Run button things seems to run a great deal more smoothly.
Hope this helps someone!