Tried to create an AVD from the eclipse environment in the following steps:
Even i faced the same problem, installing ARM EABI v7a System Image solved. try this "Open your SDK manager and ensure that you've installed ARM EABI v7a System Image"
Another silly thing that makes the OK button disabled is using the same name for the Virtual machine. Every time you click the "Create AVD" button,from the "Device Definitions" tab, AVD manager fills in a name by default. I had created one such AVD earlier and wanted to try another configuration and had the OK button disabled because the name already was in use.
Assume you guys are using Windows OS check if you have set the path for Java, platform tools and tools in environment variables. Then logout and login once again. Generally in windows the environmental variables come into effect after that login
Using the "Create Device" didn't work for me, however using "Clone" from an existing device and just modifying all of the values worked fine.
Spaces were allowed in the name as well.
I was able to find a solution by installing the System Images for the Android version I was looking to emulate.
Open up the Android SDK Manager -> Android 4.4.2 -> Check ARM EABI v7a System Image and Intel x86 Atom System Image -> Click Install Packages.
Reopen the AVD Manager and create a new virtual device.