Possible Duplicate:
Unable to create Android Virtual Device
The CPU/ABI field in Android New AVD popup window shows "No system image installed for this target".
How do I fix this?
SDK Build Tools are not installed If it fails then you may have to install it again. You look at the build tab at the bottom of the screen, it will display the error message and option to install the Build tools. Install it and you should be able to see the AVD Manager. Another way is to go to the SDK Manager.
Open your Android SDK Manager and ensure that you download/install a system image for the API level you are developing with.
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