I\'m confused regarding the densities. I see that with medium density, the screen resolution could be either 320x480, 480x800, or 480x854. So if I have an image thats 300px
This is what Device Independent Pixels (DIPs) are for. Instead of 320px write 320dip.
320px
320dip
http://developer.android.com/guide/practices/screens_support.html