1) It depends. Do you have a self signed cert on the server side and you are trying to validate your identity to the android device? Or are you on the android side trying to validate your idendity to the server? If it is the former , then please see this link: http://www.codeproject.com/KB/android/SSLVerification_Android.aspx?display=Mobile
You want to pay particular attention to where it makes the KeyStore file.
2) The reason you're getting that error is because it doesn't trust the server you are connecting either because you did not create the truststore correctly or you are connecting to a server whose certificate has not been added to the truststore. What exactly are you trying to connect to?
3) Make sure you have the <uses-permission android:name="android.permission.INTERNET" />
in the manifest.xml.
Edit
My apologies, please see the changes I made to the first paragraph.
Here is the part to initialize your keystore and truststore
SSLcontext sslContext = SSLContext.getDefault();
KeyStore trustSt = KeyStore.getInstance("BKS");
TrustManagerFactory trustManagerFactory = TrustManagerFactory.getInstance(TrustManagerFactory.getDefaultAlgorithm());
InputStream trustStoreStream = this.getResources().openRawResource(R.raw.truststore);
trustSt.load(trustStoreStream, "<yourpassword>".toCharArray());
trustManagerFactory.init(trustStre);
KeyStore keyStore = KeyStore.getInstance("BKS");
KeyManagerFactory keyManagerFactory = KeyManagerFactory.getInstance(KeyManagerFactory.getDefaultAlgorithm());
InputStream keyStoreStream = this.getResources().openRawResource(R.raw.keystore);
keyStore.load(keyStoreStream, "<yourpassword>".toCharArray());
keyManagerFactory.init(keyStore, "<yourpassword>".toCharArray());
sslContext.init(keyManagerFactory.getKeyManagers(), trustManagerFactory.getTrustManagers(), null);
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