Developers and curious users have been wondering for quite some time now why the Android Market was not present in the official Android emulator. Most likely because Google doesn't want users to rate or test apps when they're not on an actual device, it has been no where to be found on any of the virtual devices available.
However, due to the determination of the ever persistent Android community, we now have a way to port the Market app over to the emulator. Varunkumar Nagarajan, along with some help from XDA, has put together a quick guide on how to actually accomplish this.
In a pretty detailed and intensive process, Nagarajan, from Varun's ScratchPad, has laid out the process in an easy to follow 8-step tutorial. It's pretty extensive, so it's best to check it out directly from the source here.
[Via Varun's ScratchPad]