For the first problem: Eclipse can be a bit weird sometimes. Usually in Eclipse when you know something should work, but it isn't, you should save all your open files, close them from the viewer, then go up to the top bar and select "Project" then "Clean..." and then try again. Since it cleans when it opens the project, that's probably why closing it and opening it worked. Still, the easier way is to just use "Clean..."
For the second problem, after checking about a bit: Which service pack do you have for XP? A few other people have had problems with the emulator, and going from service pack 2 to service pack 3 fixed it for them.
Only other suggestion I would have is launch the emulator well before you try to launch your program. Most of the time, when I run the program I'm testing at the same time I launch the emulator, it hangs for a couple minutes.