I have added this line in the AndroidManifest.xml:
How
Ok So I have solved this. It was a problem I faced with mounting the sdcard and that android doesn't allow spaces in the path!
Here is a good procedure to follow (if eclipse is also used) : http://www.brighthub.com/mobile/google-android/articles/33240.aspx
NOTE: in case the path has a space in it, move the sdcard image file to somewhere else and then run the emulator command with the sdcard and everything should work fine!