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http://code.google.com/android/intro/installing.html
After downloading the SDK, unpack the .zip archive to a suitable location on your machine. By default, the SDK files are unpacked into a directory named android_sdk_<platform>_<release>_<build>. The directory contains the subdirectories tools/, samples/, and others.
Make a note of the name and location of the unpacked SDK directory on your system — you will need to refer to the SDK directory later, when setting up the Android plugin or using SDK tools.
Optionally, you can add the path to the SDK tools directory to your path. As mentioned above, the tools/ directory is located in the SDK directory.
On Windows, right click on My Computer, and select Properties. Under the Advanced tab, hit the Environment Variables button, and in the dialog that comes up, double-click on Path under System Variables. Add the full path to the tools/ directory to the path.
Adding tools to your path lets you run Android Debug Bridge (adb) and the other command line tools without needing to supply the full path to the tools directory. Note that, if you update your SDK, you should remember to update your PATH settings to point to the new location, if different.
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