At the time of testing camera capture and gallery in android emulator we got a message "Please insert a SD-Card". That mean we are not able to test camera and gallery functionality on emulator but no need to worry follow my blog step by step and it will help you.
1)Open you eclipse
2)Click on AVD Manager from the top of eclipse
3)Now create new AVD or Edit one from listed AVD.
4)First set SD-card size and after that click on create new Hardware
5)And now from property choose SD-card and camera if available in list
6)Run your project and enjoy :)
If it will help you please comment on my blog.