I've been using this method to gain access to internet from my Android emulator
-http-proxy <<proxy-name>> -avd <<avd_name>>
It works but is that the best way to do it? It just doesn't feel right that I need to open the emulator from command line and can't just do it from Eclipse or something.
Can't seem to find an internet option on the "AVD Manager" either.
You could also try explicitly specifying DNS server settings, this worked for me.
Default emulator options: -dns-server 22.214.171.124,126.96.36.199