Unable to resolve target ‘android-16’

I have had the same problem, after an update I got a similar error.

It can be fixed to manually edit the project.properties file and update the android-16 part to the latest one you have installed. In your current case that is android-17.

I guess it can be configured using Android ADT as well, but I could not figure it out and this was quicker

Furthermore, you have to update your manifest as well, make sure you have android:targetSdkVersion set to 17.

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