Hardik Trivedi wrote:Well when you launch emulator, it will have a option of scaling of screen size with a check box.Just tick mark it and enable the option set the desirable screen size .
Have FUN 
Thanks Hardik, but that option did not worked for me , finally with hit and trial , i got the solution and wanted to share for those having the same problem.
I changed option under "Skin"-->"Built-in" to HVGA. Although i dont know what does it mean and y it solved my problem :-)