Windows Phone design surface crashes in Visual Studio 2013

Hi,

I have created the Windows Phone 8.1 app using the default Blank App template in Visual Studio 2013 Ultimate (Update 4). The design surface is crashing with the following error.

I have more than 4GB free memory on PC. I can run the app inside emulator but unable to use the design surface inside visual studio.

Can anyone help me with fixing this?

---Error----

An Unhandled Exception has occurred.

Click here to reload the designer

Details:

System.Exception
Package could not be registered.


error 0x80070002: Windows cannot register the package because of an internal error or low memory.
   at Microsoft.Expression.HostUtility.Platform.AppContainerProcessDomainFactory.CreateDesignerProcess(String applicationPath, String clientPort, Uri hostUri, IDictionary environmentVariables, Int32& processId, Object& processData)
   at Microsoft.Expression.DesignHost.Isolation.Primitives.ProcessDomainFactory.ProcessIsolationDomain..ctor(ProcessDomainFactory factory, IIsolationBoundary boundary, AppDomainSetup appDomainInfo, FrameworkName targetFramework, String identifier, String baseDirectory)
   at Microsoft.Expression.DesignHost.Isolation.Primitives.ProcessDomainFactory.CreateIsolationDomain(IIsolationBoundary boundary)
   at Microsoft.Expression.HostUtility.Platform.AppContainerProcessDomainFactory.CreateIsolationDomain(IIsolationBoundary boundary)
   at Microsoft.Expression.DesignHost.Isolation.Primitives.IsolationBoundary.Initialize()
   at Microsoft.Expression.DesignHost.Isolation.Primitives.IsolationBoundary.CreateInstance[T](Type type)
   at Microsoft.Expression.DesignHost.Isolation.IsolatedObjectFactory.Initialize()
   at Microsoft.VisualStudio.ExpressionHost.Services.VSIsolationService.CreateObjectFactory(IIsolationTarget isolationTarget, IObjectCatalog catalog)
   at Microsoft.Expression.DesignHost.Isolation.IsolationService.CreateLease(IIsolationTarget isolationTarget)
   at Microsoft.Expression.DesignHost.IsolatedDesignerService.CreateLease(IIsolationTarget isolationTarget, CancellationToken cancelToken, DesignerServiceEntry& entry)
   at Microsoft.Expression.DesignHost.IsolatedDesignerService.IsolatedDesignerView.CreateDesignerViewInfo(CancellationToken cancelToken)
   at Microsoft.Expression.DesignHost.Isolation.IsolatedTaskScheduler.InvokeWithCulture[T](CultureInfo culture, Func`2 func, CancellationToken cancelToken)
   at Microsoft.Expression.DesignHost.Isolation.IsolatedTaskScheduler.<>c__DisplayClassa`1.b__6()
   at System.Threading.Tasks.Task`1.InnerInvoke()
   at System.Threading.Tasks.Task.Execute()

Regards,
Jeevan