I plan to dump all solutions that work for me here. I’m working on a 32-bit, Windows 7.
Setting up a Galaxy Tab Emulator:
1. Download the zip file from Samsung Mobile
2. Unzip in your android-sdk\addons
3. Back in Appecelerator, Run -> Run Configurations.
It should be created automatically.

Error locating JDK: set $JAVA_HOME or put javac and jarsigner on your $PATH
Right click on Computer -> Properties – > Advanced System Settings – > Environment Variables
For Path:

Add (Do not replace the current value) the path of your jdk’s bin folder. For me, it was “C:\Program Files\Java\jdk1.7.0_03\bin”. Since it’s a variable, place a semicolon after the current and then paste the new path. Mine looks like:
C:\oraclexe\app\oracle\product\10.2.0\server\bin;%SystemRoot%\system32;%SystemRoot%;%SystemRoot%\System32\Wbem;%SYSTEMROOT%\System32\WindowsPowerShell\v1.0\;C:\Program Files\QuickTime\QTSystem\;C:\Program Files\Microsoft SQL Server\100\Tools\Binn\;C:\Program Files\Microsoft SQL Server\100\DTS\Binn\;C:\Program Files\Microsoft SQL Server\100\Tools\Binn\VSShell\Common7\IDE\;C:\Program Files\Microsoft Visual Studio 9.0\Common7\IDE\PrivateAssemblies\;C:\Program Files\Zend\ZendServer\bin;C:\Program Files\Zend\ZendServer\share\ZendFramework\bin;C:\Program Files\Java\jdk1.7.0_03\bin
Could not locate the Android SDK at a given path
Make sure you did the previous solution. Also check out this link for solutions that have worked on others using Linux and Mac.