In order to smooth operation with android application development, I have the following eclipse.ini configuration.
-showsplash
org.eclipse.platform
--launcher.XXMaxPermSize
256M
-framework
plugins\org.eclipse.osgi_3.4.3.R34x_v20081215-1030.jar
-vm
C:\Program Files (x86)\Java\jre1.5.0_20\bin\javaw.exe
-vmargs
-Dosgi.requiredJavaVersion=1.5
-Xms128m
-Xmx512m
-XX:PermSize=256m
Check for more (including how to debug android source with eclipse)
http://source.android.com/using-eclipse
