I was also facing trouble to create AVD on my eclipse. Although my real device Galaxy S3 is working nicely as online AVD. I needed to download & install the correct driver for that and it started to do the job. But I am still searching for the real reason of the problem creating the virtual one. But here is the cofig, what is working for me now, after a long time trying.
After facing problem, first of all I installed all the package file including the Intel X86 Atom System Image for my required Android Version(For me it's Android 4.3 API 18). So that I can select the Intel Atom x86 as the CPU/ABI while creating the AVD.
And don't forget to install the Intel x86 Emulator Accelerator(HAXM) installer under the Extras on Android SDK Manager.
Here, what was my config for the AVD
- Device=Nexus 7 (7.02)
- Target=Android 4.3
- CPU/ABI=Intel Atom (x86)
- SKIN=HVGA
- RAM=2048
- HEAP=64
- Internal Storage=2000
- External=2000
- Emulation Options=Tick on "Use Host GPU"
And please keep patience, as it will take a while to start the AVD.