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The simulator isn't a virtual machine or anything like that. It is just a single thread that implements a non-preemptive version of NuttX using setjmp/longjmp to do the context switches.
http://nuttx.org/Documentation/simulation.png
The nuttx.rel Blob
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Pretty kludgey. This just begs for a better solution. If only the simulation supported interrupts...
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Simulated Interrupts
The current NuttX host simulation has no interrupts and, hence, is non-preemptible. Also, without simulated interrupts, there can be no high-fidelity simulated device drivers or precise timer interrupt.
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