I need to use my phone as emulator/target/virtual device when I run my application. I have installed HTC Sync and the USB driver is in order. I have enabled the USB Debuggin
A few tips that helped me get my Phone (Incredible 2) recognized:
In Run Configurations, make sure target is set to Manual (otherwise might default to emulator)
Install Phone drivers (from autoplay menu when plugged in), and HTC Sync. If 'Debugging Mode' isn't working, my phone will only be recognized by HTC sync and eclipse in 'Sync' mode.
Check what version of the SDK you are running. My phone hasn't been updated to Android 4.0 yet, so I had to download a previous SDK version (2.1.3)