I tried to install a game in my AVD(Android Virtual Device). Using adb install xxx.apk I got above error.
I set 2 GB Internal Storage but in AVD I have only 190MB and I set 3 GB SD Card.
Try to create a new avd
how to create a new AVD in eclipse?
http://theopentutorials.com/tutorials/android/how-to-create-android-avd-emulator-in-eclipse/
try out the following procedure
copy your apk file into platform-tools of your android sdk it can be like C:\android-sdk\platform-tools.
now go to command prompt and change the path to platform-tools the write a command as follows
cmd -- adb install (appName).apk
it takes few minutes and gives you success response in cmd prompt..
and there were many links to guide you, you can go with this reference
http://www.android.pk/blog/general/how-to-install-apk-files-on-android-emulator/