Are there any existing open source or commercial solutions for this?
There is not a solution (that I know of) aimed only at making isometric games. But isometric games are just tiled games. The main differnce is a few simple math tricks relating to converting x and y game coordinates to x and y screen coordinates. But this math is pretty well documented in a variety of languages.
I learned about it from Actionscript. The syntax of Actioncript is nearly identical to java, so you should be able to follow this tutorial pretty easily: http://www.tonypa.pri.ee/tbw/tut16.html
And there are at least two engines that I know of that support 2D tile-based games: Cocos2d for Android and AndEngine.
http://code.google.com/p/cocos2d-android/
http://www.andengine.org/
I believe Unity3D is planning to release a 2D version of their toolkit as well. http://unity3d.com But you could just as well make a 3D game with a fixed camera.
== Update == As of March 2012, Adobe flash now has a pretty good export to android and iOS, provided you use the new stage3D feature, and not the traditional display list. Fo a 2D tile-based game, a starting point would be using the starling framework for flash.
== Update 2 == As of January 2013, Unity now has official support for 2D games. I've tried making games with it and I can highly recommend it.
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