need to run emulator with proxy settings , I am using the following command in command prompt to start emulator
emulator -avd AVD_for_3_7_WVGA_Nexus_One -http-p
It still doesn't work. Please star this bug report so we can get it fixed - I already suggested to modify FD_SETSIZE from winsock.h to higer value e.g. 2048 as it doesn't change windows socket implementation as per microsoft's documentation:
// Default FD_SETSIZE is 64 which is not enough for us.
# define FD_SETSIZE 1024
https://code.google.com/p/android/issues/detail?id=102361