Create PhoneGap Setup/project in six easy steps.

1. Download latest phonegap release from -> http://phonegap.com/install/
2. unzip and go to android/bin directory of downloaded phonegap zip
3. SET DIFFERENT PATHS:(you can do this in environment also)
    java: set path=%PATH%;C:\Program Files (x86)\Java\jdk1.7.0_21\bin
    ant: set path=%PATH%;C:\apache-ant-1.9.4\bin
    JAVA_HOME: set JAVA_HOME=C:\Program Files (x86)\Java\jdk1.7.0_21\bin
Android SDK:set path=%PATH%;G:\android-sdk\tools
4. Create android peoject with command - create destination [package name] [project name]
         create D:\AndroidProjects com.project.example hello
5. Import the android project created in eclipse
6. Download and add cordova-2.2.0.jar in lib of your project.

Run ur first test