Oh I forgot about that part. The "install" part you speak of is for installing the basic components ("packages") needed for the later task of "building" an AVD. The emulator program automatically checks several components to install (including 2.2) and if you don't want or need them you have the manually uncheck each one. This same screen prompting this install will appear every single time you start up the SDK, but you just click cancel. To make an AVD, change the left side menu to "Virtual Devices" (the one at the very top), and choose "New..." from the right side to start the process of making the AVD.