I just downloaded and installed Andy and when I run it for first time and seeing this error :
Andy virtual machine image was not found
Please suggest how can I fix this problem , I am running windows 8.1 with 4GB RAM computer and its a latest one so I think visualization is enabled.
Have you tried going to HandyAndy (which sits as tiny icon at lower right corner of the screen) , right click on it, go to Settings --> Factor Factory Default (ImportOVA).
That should take some time and should solve your problem. Other wise try a reinstall and let me know how it goes.