THIS IS A POSSIBLE WORKAROUND FOR BUGS IN ADT 22.6.0 ONLY, THESE BUGS SUBSEQUENTLY FIXED IN FOLLOWING BUILDS
Download and install new ADT v22.6.1 from here (zip) or use SDK manager to update
Seems like some bug from Google side, this problem found after "ADT 22.6" update. Widely reported on "Android Open Source Project - Issue Tracker" and nobody properly answered it yet.
However I was partially successful to create an AVD by opening "AVD manager.exe" from "Android SDK" for creating new AVD try to open directly AVD Manager.exe in SDK folder.
May be we have to wait for any conformation from Android community
Worked for me, sort of.. .
(Windows 8.1 Pro 64 Bit, Java JDK 1.7 Update 25, Eclipse Standard Kepler Service Release 1, Android Development Toolkit 22.6.0.v201403010043-1049357)
Update 1
Further research revealed that launching AVD Manager from SDK Manager (Tools --> Manage AVDs...) also works without any problems.
Update 2
More bad news is AVD creation not working from command line tool too.
Update 3
Assuming some parameter passed during launching AVD manager from Eclipse causes these problems
Update 4
Updated Java to JDK 1.7 Update 51 and Eclipse Standard SDK to Kepler Service Release 2 their latest and no resolution to the problems. Also tested under Debian and same results obtained.
Update 5
At https://code.google.com/p/android/issues/detail?id=66661 android project members conforms the problems and promises to fix by upcoming versions of ADT (22.6.1 - 22.6.3). At the mean time I would suggest to roll-back ADT to a lower version version 22.3.0
To uninstall current ADT go to
Help --> About Eclipse --> Installation Details --> Android Development Tools --> Uninstall
I may suggest uninstalling whole packages from Android (DDMS, Hierarchy Viewer, NDT, Traceview, OpenGL ES..etc..) to avoid any possible compatibility issues and install a fresh new ADT from above link through archive installation method.
Hope this will solve this problem temporarily. And wait for new release of ADT here.
Update 6
New ADT, version 22.6.1 is out now which will solve these problems