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Can't create a new AVD!

I'm just in the first few steps of learning how to create an android app. I'm on the Android Development track on the "Android Setup and the Crystal Ball Project" tutorial at the 8:00 mark.

In the tutorial, the instructor says that there should be an AVD available but if there isn't, he'll show you how to create one. There wasn't one available and so I followed the instructions to create one, and it still wasn't working. This is what I got instead:

[2014-01-12 21:58:07 - SDK Manager] Error: Target location is not inside the SDK. [2014-01-12 21:58:07 - SDK Manager] Failed to set image path properties in the AVD folder.

Any ideas on how I can fix this? I am running Windows 8 64 bit.

Did you ever get this solved?