Installation error: INSTALL_FAILED_INSUFFICIENT_STORAGE? during running emulator

you need to increase virtual memory of emulator

How to increase virtual memory of emulator

emulator -avd "Emulator Name" -partition-size 500

after then try to install your apk

if you got any error then see conversation of this question

I've had the same problem but on my phone (not emulator) when developing.

To solve it when it happens I go into Settings->Applications->Manage Applications -> The app I'm working with and press Force Close, after that it works. For me this error occurs every 4-5 build, but using the Force close strategy makes it bearable (I used to restart the phone).

Phone: Sony Ericsson Xperia Ray.
**Android Version: 4.0.3
Development Environment: Eclipse Ingido

An Android virtual device provides per default only 64M for the storaging Android applications. You can clean your installed application by re-starting the emulator and selecting the "Wipe user data" flag.

also you you can edit the emulation data partition size permanent through avd manager -> emulator name -> edit -> hardware -> Ideal size of data partition = "2048"