Failing to launch Hello World with Android 2.1/2.2 and Titanium SDK 1.7.5

The emulator starts but the hello world app doesn't seem to launch. I followed the instructions from here http://wiki.appcelerator.org/display/guides/Quick+Start#QuickStart-HelloWorld%21

Am I not supposed to see hello world icon? I also checked in the settings and I don't see it in the installed apps. I see some exceptions in the trace see below

I'm Using the Titanium studio 1.0.6.2, Titanium SDK 1.7.5, Android SDK 2.1 (also tried 2.2), Java 1.6.0_24, windows 7

Any ideas?

Thanks Guy

Errors from the trace:

W/DevicePolicyManagerService(   60): failed parsing /data/system/device_policies.xml java.io.FileNotFoundException: /data/system/device_policies.xml (No such file or directory)
 
I/SystemServer(   60): Registering null Bluetooth Service (emulator)
E/System  (   60): Failure starting core service
E/System  (   60): java.lang.SecurityException
E/System  (   60):  at android.os.BinderProxy.transact(Native Method)
E/System  (   60):  at android.os.ServiceManagerProxy.addService(ServiceManagerNative.java:146)
E/System  (   60):  at android.os.ServiceManager.addService(ServiceManager.java:72)
E/System  (   60):  at com.android.server.ServerThread.run(SystemServer.java:184)
I/SystemServer(   60): Device Policy

Eventually the solution was here: http://developer.appcelerator.com/question/92281/kitchensink-trace-failure-installfailedmissingsharedlibrary