As already mentioned, the Android emulator works great, although you should be aware that it is very slow and it does not support some device sensors, such as accelerometers (although there is a property called hw.accelerometer). However, this is pretty good for testing touch screens, physical keyboards and trackballs as input devices, as well as for testing the compatibility of your application with different API levels and screen sizes.
EDIT: You can also try the Intel Atom emulator. You can download it directly from the android utility that comes with the SDK. What's cool about this is that it is based on x86, so it is much faster.
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