If you are using Eclipse, just click on the Android Device Manager icon, then click on the Android Device Manager tab, if you've already create an AVD just select it, then click on the "Edit Button" on the right side, then locate where SD Card is then change size to you prefer number "e.g: 256 or 512 or 1024" and make sure that you have enough "Internal storage capacity", then click on the "OK" button. Now go to the "Run Configuration" and start your AVD emulator, in the setting of AVD you should see that your SD Card is "Mounted".
This should work.
If you want to add a file or folder into your SD Card just do the following:
Steps:
Open your Android application's source code file with a text or programming editor.
Browse to the location in the source code where you wish to call the function that writes a file to the device's external storage.
Insert this single line of code to check for the SD card:
File sdCard = Environment.getExternalStorageDirectory();
Insert these lines of code to set the directory and file name:
File dir = new File (sdcard.getAbsolutePath() + "/folder1/folder2");
dir.mkdirs();
File file = new File(dir, "example_file");
Replace "/folder1/folder2" in the above code with the actual path where you intend to save the file. This should be a location in which you normally save your application files. Also, change the "example_file" value to the actual file name you wish to use.
Insert the following line of code to output the file to the SD card:
FileOutputStream f = new FileOutputStream(file);
Finally step 7:
Save the file, then compile it and test the application using the Android emulator software or the device.
This will works!!! ;-)