I am trying to get a look at the Gallery application in ICS, using the emulator.
So, I launch an AVD and snap a couple of pictures with the Camera then launch the Galler
I was having the same problem and solved it by decreasing Abstracted LCD Density in emulator edit options. In the hardware subsection Abstracted LCD Density must be having a higher value(in my case it was 240).So I decreased it to 160 and then the camera starts up with the emulator.
I was using WVGA800 which had a higher value for LCD Density so one can try changing the skin as well to get the desired result.