I have overcome this problem by changing the device screen size.
I have found that if you are specifying 1024 mb ram then you have to specify the device screen size in hdpi only and if it is 512 mb ram then it should be mdpi or others.
So, We can clearly say that ram size should be specify according to the screen size . If you are specifying the 1024 ram size while keeping the device screen size in mdpi then it results in the above mentioned error i.e "Failed to allocate memory: 8 This application has requested the Runtime to terminate it in an unusual way.
Please contact the application's support team for more information."
or
make your options in AVD manager as follows:
[2013-01-11 14:44:01 - SDK Manager] hw.sensors.orientation=yes
[2013-01-11 14:44:01 - SDK Manager] hw.camera.front=none
[2013-01-11 14:44:01 - SDK Manager] hw.gps=yes
[2013-01-11 14:44:01 - SDK Manager] skin.dynamic=no
[2013-01-11 14:44:01 - SDK Manager] hw.keyboard=no
[2013-01-11 14:44:01 - SDK Manager] vm.heapSize=32
[2013-01-11 14:44:01 - SDK Manager] hw.ramSize=343