Android Device Emulator: Unfortunately, System UI has stopped

In my journey to develop Android apps I got a non pleasant surprise when starting a custom AVD (Android Virtual Device) from the Manager.

This however happened when using an AVD with Android 4.0.3 as the target, with my other (4.2.2) setup I didn’t have such problem.

This is the message I was having when starting the AVD:

unfortunately-system-ui-has-stopped
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