I have downloaded the source code and ADT is pluged in to Java ecplise. I keep getting the same error message, have tried with different images. Also, where/ what site can i download new devices from?(HTC etc.)

This and other errors / warnings / messages are very common in Eclipse. When compared to iOS and the Xcode SDK, Ecipse is very frustrating sometimes. The 'used by another emulator' message is usually caused when an app is running in the simulator (emulator) and 'build and run' is selected again. I've found that quitting running applications (in the emulator) before re-launching works well. But, like you probably realize, there are lots of ways to setup emulators in Eclipse and the behavior will depend on the emulator you configure. I have not downloaded any 'non standard' emulators for awhile so I'm not sure of the best place for you to get an HTC evo sim. Keep in mind that all you'll be getting if you do this is the 'skin' - the behavior is controlled by the framework you build against (1.6, 2.0, 2.1, etc). This project should be built against Google's 1.6 So, setup a standard emulator, don't worry too much about the way it looks, and test your projects that way. When you get a little more used to the process you can begin exploring new 'skins' for emulators if you want (I've found this to be a giant waste of time)