Android SDK expects your AVD to be located at the location “C:Documents and Settings<username>”. If your home folder is at some other location, you might see the error:
ERROR: unknown virtual device name: <device name>
when you try to run your application in the emulator. To fix this, create a new environment variable named “ANDROID_SDK_HOME” and set its value to the location of your home folder. To be sure that you are entering the correct value, verify that there’s a folder named “.android” at this location.