1) Download appropriate file for your system from http://developer.android.com/sdk/index.html
2) Extract to desired location
3) Run “SDK Setup.exe” (or the equivalent for your system)

a. If you receive an error message stating “Failed to fetch url…” then you will have to force the Setup program to use http in lieu of https.

i. Close the “Refresh Sources” window
ii. Cancel the “Choose Packages to Install” window
iii. Select “Settings” from the left side of the “Android SDK and AVD Manager” window
iv. Check the box labeled “Force https://… sources to be fetched using http://…”
v. Click “Save and Apply”
vi. Close and restart the SDK Setup program

a. If you are only interested in trying out the Android 2.0 Emulator
i. Reject everything except “SDK Platform Android 2.0. API 5, revision 1” by selecting each item then selecting the Reject option
b. If you plan to develop Android applications and Games, you may wish to Accept All
c. Click “Install Selected”
(Since I’m new in Android, I chose “Accept All”, because I’m not sure which thing should be installed. I don’t advise to choose “Select All”.)

5) Allow the selected packages to download and install then close the “Installing Archives” window
6) Create a new Android Virtual Device (AVD). Go to Virtual Devices at the left menu, and then click New button.

a. Select “Virtual Devices” from the left side of the “Android SDK and AVD Manager” window
i. Click “New”
ii. Enter a Name
iii. Choose a Target
iv. Enter a size for the emulated SD Card
v. Choose a Skin
1. To emulate current hardware such as the G1, MyTouch 3G, Hero, etc…
a. Leave the default value
2. To emulate the Motorola Droid
a. Choose WVGA 854
3. To emulate other devices
a. Choose anything else
vi. Click “Create AVD”

7) Start your newly created Virtual Device

a. Choose the Virtual Device from the list
b. Click “Start…”
c. Click “Launch”

8) Just wait the android takes for a while to setup complete. This depends on the user’s machine. (will look for tweaking solutions to solve this issue)

9) After setup complete!

Testing my facebook using Android Emulator.

Credits to http://androidandme.com