Hi Shawn,
It might well have something to do with Visual Assist or Incredibuild. It must be some specific circumstance and it's most certainly not the fact that ViEmu breaks editing text files altogether, many customers use ViEmu with Visual Assist with no other problems.
Disabling Visual Assist would indeed cause quite a few problems, as if ViEmu finds VAX installed, ViEmu will stay waiting for Visual Assist to hook the windows, which is must do to ensure correct ordering. Thus, you need to either completely uninstall Visual Assist or enable it for ViEmu to work correctly.
Would you mind uninstalling Visual Assist and Incredibuild, installing ViEmu first (or having it installed from the first moment), checking if everything works correctly, and then installing Visual Assist and Incredibuild one at a time and testing after each installation? That should help us pinpoint the culprit. If it works fine with Visual Assist, and things are broken once Incredibuild is installed, it would be greta if you could install Incredibuild with ViEmu only, to check that indeed that is the case (and that it's not a three-way interaction problem).
I apologize for the hassles, one of the main causes is that ViEmu has to go to great lengths to intercept windows *after* Visual Assist does, so that a 'b' for example will be caught by ViEmu first and used to move to the previous word, and not seen by Visual Assist which pops up a completion drop down box with 'bool' and other types starting with 'b'.
Also, please let me know what type of file you are working on, as it might well make a difference.
Thanks and regards,
Jon