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Emulator Won't Launch: "invalid command-line parameter: Files."

There is a problem with Android SDK R12 when you try to launch the emulator:
invalid command-line parameter: Files.
Hint: use '@foo' to launch a virtual device named 'foo'.
please use -help for more information
The cause of this is that spaces are not allowed in the SDK location path. If you just installed the SDK to the default location (i.e. "C:\Program Files(x86)\Android\android-sdk"), this problem will definitely occur.

For Eclipse users, you can solve it by changing the SDK location path to "C:\PROGRA~2\Android\android-sdk".

Otherwise, if you cannot easily set the SDK location path in whatever IDE you use, you can solve it by creating a "legal" symbolic link to your actual SDK location. In Windows, you can use the command:
MKLINK /J C:\Android "C:\Program Files (x86)\Android\android-sdk\"
And then you can just use the symbolic link location to refer to the actual SDK location.

Alternatively, I believe installing the SDK to a location with no spaces (e.g. "C:\android-sdk") would probably work as well.

Reference: stackoverflow