When I click the \'run as Android application\' option, it shows the following error:
[2010-08-16 16:56:35 - Emulator] invalid command-line parameter: http:/
I had this same exact error when I would try to launch the emulator from Eclipse. I had all my Android files in my documents to begin with, not my program files. I moved these files and still had the problem because of my user name having a space in it.
So I took the suggestion of Andrew McGarry and put my Android SDK folder in my C: directory and viola, problem solved...well after I redirected it in Eclipse obviously lol.
Just make sure that nothing in your SDK path has a space in it and you should be fine. You shouldn't have to uninstall or delete anything, and you probably won't have to move any files around either. Remember...no spaces in the entire path. =)