Create Android Emulator

The Android SDK includes a mobile device emulator -- a virtual mobile device that runs on your computer. The emulator lets you prototype, develop, and test Android applications without using a physical device.

The Android emulator mimics all of the hardware and software features of a typical mobile device, except that it can not receive or place actual phone calls. It provides a variety of navigation and control keys, which you can "press" using your mouse or keyboard to generate events for your application. It also provides a screen in which your application is displayed, together with any other Android applications running.

Steps to create a emulator

Open eclipse
Window>Android SDK and AVD Manager

It will shows the Android SDK and AVD Manager

In that Virtual Device click that new Button

 Fill the name and all.
Select the appropriate target. Here we select the latest Android 2.2 -API Level 8
It's always good to add sdcard. Because later we may use app that access sdcard
For that click that new botton

After completing it will look like this

Now it is ready. Click on 'Create AVD'
Then it will shows the summery

By pressing OK it will be added in AVD manger

You can see the AVD_2.2, the name we given to the AVD. Then by pressing start we can start running