pm is a non standard linux command within the emulator. Use adb shell, connect to your emulator and try to run pm. There seems to be no documentation about the tool but it should be a command line "package manager" (very primitive, though). If you can't execute pm then please reinstall your emulator. Sound's like a broken image.
You might also want to run the emulator with debug-kernel and look for mtd msg's. Propably some of the emulator yaffs2 fs's got messed up. Happens quite often