Select "File/New/Project". Select the type of project "Android", then make "Next". In the window which appears, inform: "Project Name": name of the project. "Package Name": specify the name of the Java package. The fact of creating "Activity" requires to specify the name of the class which will be initial Activity and name of the application "Application Name". "Min SDK version" allows to specify the minimun version of the SDK on which the application will work.

The Android version 1.6 ( Donut) is version 4. The 2.0 (Eclair) SDK is version 5. The 2.1 is version 7 … For more information, see

He may arrive that the list of the various versions of Android is empty, what blocks for the creation of the project. Leave the creation of the project, and go to "Windows/Preference". Select "Android", in the right window, inform "SDK Location :" with the complete path to reach the SDK Android

You can relaunch the creation of the new project, the list is now informed.