Found the following solution.
Go to the following directory in your computer:
C:Users.androidavd
Inside this directory you will find all files and directories with the definition and content of your avd machines-
Now do the basic troubleshooting steps:
-check if the avd directory exists and if it contains a file with the name "sdcard.img".
-if the file exists, try to rename it (to check if its locked) and then go to eclipse and ask to create a new sd card.
-if it fails, try to create manualy a file with that name to check premissions.
good luck
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