I think if you really want help you're gonna have to be a little more specific about what's happening.
So far all we really know is that you have a failed AVD. If you can be more specific then you'll get better help.
Personally, I'd just remove the Android SDK and Processing, and reinstall the last version you know worked well.
If this all works ok, then install 1.5 and keep track of what you're doing when it goes wrong, post your system spec, let us know if Processing still works in Normal mode etc. More info the better.
D.