Android Emulator Error : Not enough free space on device Help Needed

Android emulator will not run for any project (including new Hello World).

• Mobile
• SDK 3.5.1 GA
• Android Emulator (any)
• Mac 10.9.5
• Titanium Studio, build: 3.4.1.201410281727

[ERROR] Application Installer abnormal process termination. Process exit value was 1

[ERROR] : Failed to install apk on "emulator-5554"

[ERROR] : Error: Not enough free space on device

There are no other messages logged

I have tried:

1. Quitting/restarting Ti Studio
2. Clicking run button after error with emulator launched
3. Kill/start adb server from command line
4. Start adb server from command line prior to clicking run button

Any help or suggestion on how to resolve this is greatly appreciated.