The generic-x86 target has been deprecated probably because Android does not like being built for generic hardware. Providing support for many different types of computer requires complicated programming.
You need to download android-x86-2.2-r2-asus_laptop.iso
This image is located here
This image worked on my Acer Aspire 1gig laptop. I wrote the image to a USB stick and booted from that.
An alternative is to use Virtualbox