Android 4.0 emulator - out of space error

I get an Out of space error when i try to install my app on the android 4.0 emulator. It gives me a message asking me to cleanup the space. When i go to internal storage I see 12 MB free which more that enough for my app.

To be safe, is there a way i can increase the Internal Storage of the Emulator

How do I free up space on my emulator?

Click Tools -> AVD Manager. Click the edit icon for the emulator. Click the Show Advanced Settings. Under Memory and Storage, reduce the Internal Storage, specify something like 2048MB for an emulator that comes with Google Play store or less for emulators without the Google Play Store.

Create an AVD (example: "android4") In Eclipse with the Android Virtual Device Manager

go to a terminal

cd [android directory]/tools/

linux terminal: ./emulator -avd android4 -partition-size 512 &

windows : emulator -avd android4 -partition-size 512

Then install your app in this emulator