I am developing an application for Froyo as minimum version and Gingerbread as the target version. So, the manifest shows:
I found this post having similar question and a lot of different possible solutions. However, in my case the problem was in my Android project settings. Somehow my project's Java build path was not linked to the source folder. And thats why my manifest file was unable to find the activity class. I solved this problem by linking the src folder. To do so, right click on the project "properties"->"Java Build Path". Then select the tab "Source". Check if your src folder is listed here. If not, click on "Add Folder..." and then navigate to your src folder of the project.