If you only want to show your own location, than a MyLocationOverlay is probably easiest.
Quick information here (rest of that article might be helpful too):
http://www.vogella.com/articles/AndroidLocationAPI/article.html#maps_mylocation
About not being able to test it in the emulator: You can test it. In Eclipse switch to DDMS Perspective and in the left you see "Emulator Control" there you can "Send" Locations below "Location Controls". This is as well described in the above tutorial.
