Ive seen the questions posted about this issue. I understand it takes several minutes for the emulator to configure itself and launch. But if Im getting the specific error
wait for the emulator to setup completely and then test your app. Also, I would leave you AVD open so you dont have to wait so long everytime you run your application.
When it shows the red writing, don't close anything - leave it there and then press the run button again. Worked like a charm.
You may need to increase the device ram size. For some Honeycomb AVDs at least, the default of 256 is insufficient, and caused me the same problem. Try at least 512.
Go to window and preference and increase the ADB connection time out(ms) which is 500 by default. Also change the base local debugger port to more than 9000 in my case it worked.