Problems launching app in Android emulator

I've created an Android runtime and sample project as described in the documentation, but if I try to run this the app isn't loaded into the emulator.
The emulator starts, device home screen appears, but the app itself isn't loaded.
The run info in IntelliJ shows the following before the run instance terminates:

Waiting for device.
C:\tools\android-sdk-windows\tools\emulator.exe -avd standard_2_2 -netspeed full -netdelay none

Device connected: emulator-5554
Device is online: emulator-5554
Target device: emulator-5554 (standard_2_2)
Uploading file
local path: D:\dev\untitled1\out\production\androidtest\androidtest.apk
remote path: /data/local/tmp/com.example
Installing com.example
DEVICE SHELL COMMAND: pm install -r "/data/local/tmp/com.example"
pkg: /data/local/tmp/com.example
Success

Launching application: com.example/com.example.MyActivity.
DEVICE SHELL COMMAND: am start -n "com.example/com.example.MyActivity"
Starting: Intent { cmp=com.example/.MyActivity }

Any ideas about what I'm missing here?

running IDEA 10.5.1, latest Android SDK (configured project for 2.2), JSDK 1.6.0_20 and 1.7.0 (set Android SDK to point to 1.6.0_20).

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