As per the Dummies: Android Apps book, I downloaded JDK & SDK, but when I try using Eclipse, error message says that I need JDK or JRE. How do I rectify this problem?
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Make sure you configure the java_home variables in windows. See this tutorial: http://wso2.org/project/wsas/java/1.1/docs/setting-java-home.html
Also make sure you point to java 6 SDK as java 7 is not supported for android development.
You can configure java sdk location in eclipse too, try: Eclipse - no Java (JRE) / (JDK) ... no virtual machine