Apparently the problem are the spaces in the path, so just from:
C:\Program Files\Android\android-sdk
to:
C:\PROGRA~1\Android\android-sdk
If you have a 64 bit system
From:
C:\Program Files (x86)\Android\android-sdk
to:
C:\PROGRA~2\Android\android-sdk
Under Windows->Preferences->Android Change the SDK Location as shown above.
Translated from: http://satoriwd.com/astath/?p=11