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If you have recently updated your Android SDK you will find this target;
id: 17 or "android-12" Name: Android 3.1 Type: Platform API level: 12 Revision: 2 Skins: WXGA (default)
You may be lured into creating an emulator using it. If you do, don’t expect it to work. I wasted a day on it. It goes so slowly that it is unusable. Adding more ram helps; hw.ramSize = 2047. Unfortunately on my Windows 7 64 bit box I got the error “Cannot allocate memory”.
Lots of users report the same problem. If you need to test on an Android tablet buy a cheap one and use that.
Dr James Bayley 
This is a typical problem in Windows. You can fix it in the following ways:
1. Change the Device Ram size to 512MB when creating the emulator – Worked for me
2. You can increase the VM size of your OS and then check.