Apparently the problem are the spaces in the path, so just from:
C:Program FilesAndroidandroid-sdk
to:
C:PROGRA~1Androidandroid-sdk
If you have a 64 bit system
From:
C:Program Files (x86)Androidandroid-sdk
to:
C:PROGRA~2Androidandroid-sdk
Under Windows->Preferences->Android Change the SDK Location as shown above.
Translated from: http://satoriwd.com/astath/?p=11
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