When I clicked SDK Manager on Program Files or run it in cmd, nothing happened. I did:
Similar to sixty9 I renamed java.exe, javaw.exe, javaws.exe (I never delete files when troubleshooting) after I created a JAVA_HOME environment variable and added path variables.
I had installed the Java SDK on my D:\ drive ( instead of the default).
Create a JAVA_HOME variable: Variable Name: %JAVA_HOME% Value: D:\Program Files\Java.
Added the following to the Path variable:
%JAVA_HOME%\jre7\bin;%JAVA_HOME%\jdk1.7.0_03\bin;
Renamed java.exe, javaw.exe and javaws.exe.
Restarted the system and the Android SDK installer found my JDK and installed successfully.