This problem has been fixed. There was something wrong with one of the build files, so I just created a new project and copied all the resources over and the Android Emulator worked :)
Thanks to those who helped!
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Sounds like your disk is full. Is /data/local/tmp on a separate mount?
I've fixed this. Thanks for the help Glenn, but it wasn't that... For some reason there was something wrong with my XML file or something, so I just created a new project and copied all the resources over and it worked fine :) Android Emulator is back up! :)
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