Just did the Try It Out for this section and while there were no errors, the app wasn't running correctly. It immediately showed the username field and OK button, hitting center D-pad button didn't do anything, and entering name and hitting the OK button did nothing.
After looking through the code it seemed to me that the code it instructs to be entered in main.xml in step 1
Code:
<TextView
android:layout_width="fill_parent"
android:layout_height="wrap_content"
android:text="Please Enter Your Name" />
<EditText
android:id="@+id/txt_username"
android:layout_width="fill_parent"
android:layout_height="wrap_content" />
<Button
android:id="@+id/btn_OK"
android:layout_width="fill_parent"
android:layout_height="wrap_content"
android:text="OK" />
should actually be entered into activity2.xml, so I tried it and the app worked as described in the book.
I checked the downloadable code, and it seems to have that code entered into main.xml as well. I haven't tried running the downloadable code to confirm that it doesn't work either, but following the flow of the code and the desired result, it really seems like that code belongs in activity2.xml, not main.xml.
Hope this is helpful.
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---Edit---
Discovered the Errata section for the book... this error and others are already listed
HERE. A good place to check if stuck on a project as it seems there are a few problems in the code in the book.