Kitchen Sink Sample Doesn't Run

I am using Titanium Studio 3.1.1.201306112235 on Windows 7 and imported the Kitchen Sink sample from the Develop tab. I have the android SDK and AVD managers installed, as well as the 2.3.x and 4.x APIs, Tools and Extras. The Get Started tab says "The Android SDK is installed correctly!" When I right click the Kitchen Sink project and then select Run As -> Android Emulator, I get the following console output

Titanium Command-Line Interface, CLI version 3.1.1, Titanium SDK version 3.1.1.GA
[INFO] :   Running emulator process: python "C:\Users\xxxx\AppData\Roaming\Titanium\mobilesdk\win32\3.1.1.GA\android\builder.py" "emulator" "KitchenSink" "C:\Program Files (x86)\Android\android-sdk" "C:\Users\xxxx\Documents\Titanium_Studio_Workspace\Kitchen Sink" "com.appcelerator.kitchensink" "1" "HVGA" "armeabi"
[INFO] :   Running build process:  python "C:\Users\xxxx\AppData\Roaming\Titanium\mobilesdk\win32\3.1.1.GA\android\builder.py" "simulator" "KitchenSink" "C:\Program Files (x86)\Android\android-sdk" "C:\Users\xxxx\Documents\Titanium_Studio_Workspace\Kitchen Sink" "com.appcelerator.kitchensink" "1" "HVGA"
[INFO] logfile = C:\Users\xxxx\Documents\Titanium_Studio_Workspace\Kitchen Sink\build.log
[ERROR] :  Emulator process exited with code 1
[ERROR] :  Build process exited with code 1
[ERROR] :  Project failed to build after 359ms

and the following is in build.log

Logfile initialized
[INFO] logfile = C:\Users\xxxx\Documents\Titanium_Studio_Workspace\Kitchen Sink\build.log
[DEBUG] C:\Users\xxxx\AppData\Roaming\Titanium\mobilesdk\win32\3.1.1.GA\android\builder.py emulator KitchenSink C:\Program Files (x86)\Android\android-sdk C:\Users\xxxx\Documents\Titanium_Studio_Workspace\Kitchen Sink com.appcelerator.kitchensink 1 HVGA armeabi
[INFO] logfile = C:\Users\xxxx\Documents\Titanium_Studio_Workspace\Kitchen Sink\build.log
[DEBUG] C:\Users\xxxx\AppData\Roaming\Titanium\mobilesdk\win32\3.1.1.GA\android\builder.py simulator KitchenSink C:\Program Files (x86)\Android\android-sdk C:\Users\xxxx\Documents\Titanium_Studio_Workspace\Kitchen Sink com.appcelerator.kitchensink 1 HVGA

I've tried to review some previous questions/answers but can't get the Kitchen Sink sample to run.

Any ideas???