You do not need to change the PATH in order to get it working, I would install the sdk, remove the PATH and then open eclipse. After installing the eclipse plugins for Android you can setup your project.
Eclipse will set the PATH internally, the only reason you need to specify a path is if you plan on using the tools with a command prompt.
Try removing the path and then going over the steps here again, skipping the optional PATH assignment:
http://code.google.com/android/intro/installing.html

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